A possible employer gap exists when the following conditions are met:

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  There are earnings in 1977 without details available, AND

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  There are no earnings posted in 1978 or 1978 and 1979, AND

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  There are earnings details in 1979 or 1980 (depending if the gap is 1 or 2 years), AND

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  The earnings before (1977) and after the gap (1979 or 1980) are both greater than $2,500.00.

The gap is only for the above year(s). The gap is displayed because there are no MEF record details available to determine if the gap is for a particular employer. If there are MEF record details available then the alert will be Employer Gap. See SM 00355.010.

An Employer Gap is identified when a search of the MEF records for the entered SSN indicates the following:

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  For a one year gap the difference in the total yearly earnings before and after the gap year exceeds the total yearly earnings in the gap year by $2,500.00. Both totals must be greater than $2,500.00; and

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  For a two year gap, the difference in the total yearly earnings before the 1st gap year and after the 2nd gap year exceeds the total yearly earnings in the gap year by $2,500.00. Both totals must be greater than $2,500.00; and

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  The average earnings exceed $2,500.00 for that EIN posted in the year(s) before and after the gap; and

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  The total posted earnings for the gap year are the “total of the FICA MAX (minus) $2,500.00.

A Self-Employment Gap (SE) exists when:

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  There is no SE income posted for an individual in one or two consecutive years; and

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  There is SE income for an individual posted in the years before and after the gap; and

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  The year prior to or after the gap year(s) has SE earnings in excess of $2,000.00 and the FICA MAX has not been reached in the gap year(s).

If FICA Max from wages is present in the gap year, no alert is generated.

Request a DEQY for the alerted year and adjacent years.

Query the ERQY to determine whether the employer submitted wage reports for the year(s) in question.

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  If the ERQY indicates an employer report was filed, check the ESF for that employer to determine if the earnings for the NH are in the Earnings Suspense Record (ESR).

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  If the ERQY shows no employer report filed, search the ESF by name and/or SSN. The employer may have reported the earnings under an incorrect EIN.

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  If the earnings are located in the ESF and it is apparent that the earnings were placed in the ESF as the result of an incorrect name or SSN on the W-2, reinstate the earnings to the NH. It is not necessary to see the W-2, however there must be no question concerning the NH’s identity that the earnings belong to the NH or with the amount of earnings.

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  If the ESF shows two or more individuals with the same name or if there is a question concerning the amount of earnings, do not reinstate the earnings. Develop to resolve the issue and determine the correct amount of earnings.

EXAMPLE: Maria Gonzalez Alvarez states they worked for the ABC Deli from 04/88 through 10/97. The ERQY shows Employer Gap for the ABC Deli for 1995. They state they earned approximately $13000 in 1995. The ESF shows both a M. G. Alvarez with earnings of $12,720 and a Marisa Gonzalez with earnings of $3115 for the ABC Deli in 1995. Both SSNs differ by only a few digits. A review of Maria Gonzalez Alvarez’s DEQY for the years surrounding 1995 and their SEQY indicate their earnings were between $11,500 and $17,000 for the years they worked for the Deli. Therefore, reasonably assume that their earnings in 1995 were $12,720 and move their earnings from the ESF to their correct SSN. (MSOM EM 012.001 through MSOM EM 015.004)

If the wages are not in the ESF and the ERQY shows the employer filed a paper report AND the year is within the Statute of Limitations (RS 02201.001), request scouting. EMOD ICOR will not permit adding earnings for years within the Statute of Limitations if the employer reported earnings to SSA via a paper report (MSOM EM 022.002). Scouting is not required if the employer filed electronically with SSA.

If the earnings are located in the ESF or as the result of scouting (i.e., posted to the MEF) then clear the EMOD ICOR earnings action and notify the claimant by a dictated notice that the earnings were added to the earnings record.

If all other factors of entitlement are met, process the claim for benefits.

If the employer did not file a report and/or the earnings are not located in the ESF or posted to the MEF as the result of scouting, obtain evidence of earnings per RS 01403.000.

If no evidence is available, only 1 year of earnings is missing and subpoena action (RS 01403.080) is not appropriate (subpoena action is rarely applicable), determine whether to add the earnings pursuant to RS 01403.061.

Correct the earnings record.

If the evidence is insufficient or does not support a favorable decision and the requirements in RS 01403.061 do not apply, deny the request for correction. Include appeal rights in the notice. In claims cases, document the claim indicating the NH (or claimant) disagreed with the earnings record but development resulted in insufficient evidence to add the earnings.

EXAMPLE: Mrs. Smith stated they had earnings in 1990 and 1991 as a nanny. They stated they were not self-employed but an employee of the Loving Nanny Corp. The company was no longer in business and Mrs. Smith was unable to present any supporting documentation or evidence of their employment with the Loving Nanny Corp for 1990 and 1991. We denied their request and appropriately annotated the claims file.