TN 8 (11-93)

RS 01401.350 Substitute or Assistant Pay

A. Definition

A substitute or assistant (hereafter referred to as substitute) is an employee who works in place of the principal employee or who assists the principal employee.

If the substitute is hired by a person who has either express or implied authority to employ on behalf of the employer, the substitute is an employee of the employer. If there was no authority, the substitute is an employee of the principal employee.

B. Policy

1. Authority to Hire

The principal employee's wages are the difference of what the employer pays the principal employee and what the principal employee pays the substitute.

2. No Authority to Hire

If the substitute is an employee of the principal employee, employer payments are the principal employee's wages. Remuneration paid by the principal employee to the substitute is wages for the substitute.

C. Procedure

If a substitute’s earnings are incorrectly credited to the principal employee’s earnings record, after determining which earnings belong to each employee, correct the earnings for each individual by moving the incorrectly posted earnings via ICOR to the individual’s earnings record to whom the earnings belong.

If a wage determination changes the total amount posted to SSA records, in addition to an earnings transfer, prepare a Form SSA-7010-U5 (Notice of Determination) in conjunction with a Form SSA-746.

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RS 01401.350 - Substitute or Assistant Pay - 03/13/2013
Batch run: 07/03/2014