TN 26 (11-23)

RS 02505.010 When Wages Are Earned for Earnings Test (ET) Purposes

A. Wages earned versus wages paid

Wages earned versus wages paid is the period in which earned wages may differ from the period in which wages are actually paid.

1. When wages are earned

We consider wages earned in the taxable year (TY) for services performed, regardless of when the employer actually paid the wages.

A taxable year is the same for coverage purposes, see RS 01803.040.

2. Rebuttable presumptions

  1. a. 

    Rebuttable presumptions presume that wages paid to an individual during a TY are for services earned in that year.

  2. b. 

    If the individual reports wages for a calendar year, presume that the TY is a calendar year.

  3. c. 

    Consider that the remuneration received is for services rendered throughout the entire employer-employee relationship. For guidelines on employer-employee relationships, see RS 02505.015.

  4. d. 

    The continuation of the employment relationship is sufficient to establish the performance of services. For information regarding the termination of an employment relationship for ET purposes, see RS 02505.015.

  5. e. 

    Remuneration received for periods during continuation of the employer-employee relationship for which there were no rendered physical or advisory services that constitute earnings for ET purposes unless statutorily excluded.

B. Procedure for developing wages

If a beneficiary alleges or it appears that the earned wages are for a year other than when paid or that their taxable year is not a calendar year, develop as necessary and make a decision based on the available evidence.

For guidance on developing wages, see

  • RS 02505.025 Special Wage Payment (SWP),

  • RS 02505.030 When SWP's Are Considered Earned if Payment Is Made Before the Employment Relationship Terminated - Policy, and

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RS 02505.010 - When Wages Are Earned for Earnings Test (ET) Purposes - 11/15/2023
Batch run: 11/15/2023