POMS Reference

Table of contents Recent changes
Contact
Back
This change was made on Jan 16, 2018. See latest version.
Text removed
Text added

SI 00820.115: Wage Advances and Deferred Wages

changes
← * →
  • Effective Dates: 11/05/2008 - Present
  • Effective Dates: 01/16/2018 - Present
  • TN 48 (11-08)
  • SI 00820.115 Wage Advances and Deferred Wages
  • A. Definitions
  • 1. Wage Advances
  • Advances are payments by an employer to an individual for work to be done in the future.
  • 2. Deferred Wages
  • Wages are considered “deferred” if they are received later than their normal payment date. Types of wage payments which may be deferred include vacation pay, dismissal and severance pay, back pay, bonuses, etc.
  • B. Policy
  • 1. Wage Advances
  • An advance is wages in the month received.
  • 2. Deferred Wages
  • * Wages that are deferred due to circumstances beyond the control of the employee are considered earned income when actually received.
  • * Wages that are deferred at the employee's request or by mutual agreement with the employer are considered earned income when they would have been received had they not been deferred.
  • C. Procedures
  • 1. Wage Advances
  • Assume that an advance on wages meets the definition of wages (as opposed to being a loan), absent evidence to the contrary. Charge such advances on wages as income when received.
  • NOTE: Advance military pay is a cash loan. See SI 00830.540B.2.
  • 2. Deferred Wages
  • If the individual alleges or other evidence shows that wages were deferred, request from the employer an explanation of the reason for the deferment.
  • If the employer:
  • * Provides an explanation, document the employer’s explanation as to why the wages were deferred on EVID, or a MSSICS DROC screen and lock it. For non-MSSICS situations, document on an SSA-5002 (Report of Contact) and fax it into the Non-Disability Repository (NDRED) or the Certified Electronic Folder (CEF), as appropriate. Once the documentation is stored and viewed for content in either eView or through the NDRED by using CFRMS, there is no need to retain the documentation.
  • * Is uncooperative but the individual satisfactorily explains, document the individual's signed statement as to why the wages were deferred on a MSSICS DPST screen. Document why the employer was uncooperative and the individual’s explanation of wage deferment on EVID or a MSSICS DROC screen and lock it. If an SSA-795 (Statement of Claimant or Other Person) was obtained, fax it into NDRED or the Certified Electronic Folder (CEF), as appropriate. Once the documentation is stored and viewed for content in either eView or through the NDRED by using CFRMS, there is no need to retain the documentation.
  • * Is uncooperative and the individual cannot satisfactorily explain, document with a statement to that effect on EVID, or a MSSICS DROC screen and lock it. For non-MSSICS situations, document on an SSA-5002 (Report of Contact) and fax it into the Non-Disability Repository (NDRED) or the Certified Electronic Folder (CEF), as appropriate. Assume that the wages were available to the employee when they would have been received had they not been deferred. Once the documentation is stored and viewed for content in either eView or through the NDRED by using CFRMS, there is no need to retain the documentation.
  • * Provides an explanation, document the employer’s explanation as to why the wages were deferred on EVID, or a MSSICS DROC screen and lock it. For non-MSSICS situations, document on an SSA-5002 (Report of Contact) and fax it into the Non-Disability Repository (NDRED) or the Certified Electronic Folder (CEF), as appropriate. Once the documentation is stored and viewed for content in either eView or through the NDRED by using CFUI, there is no need to retain the documentation.
  • * Is uncooperative but the individual satisfactorily explains, document the individual's signed statement as to why the wages were deferred on a MSSICS DPST screen. Document why the employer was uncooperative and the individual’s explanation of wage deferment on EVID or a MSSICS DROC screen and lock it. If an SSA-795 (Statement of Claimant or Other Person) was obtained, fax it into NDRED or the Certified Electronic Folder (CEF), as appropriate. Once the documentation is stored and viewed for content in either eView or through the NDRED by using CFUI, there is no need to retain the documentation.
  • * Is uncooperative and the individual cannot satisfactorily explain, document with a statement to that effect on EVID, or a MSSICS DROC screen and lock it. For non-MSSICS situations, document on an SSA-5002 (Report of Contact) and fax it into the Non-Disability Repository (NDRED) or the Certified Electronic Folder (CEF), as appropriate. Assume that the wages were available to the employee when they would have been received had they not been deferred. Once the documentation is stored and viewed for content in either eView or through the NDRED by using CFUI, there is no need to retain the documentation.
  • D. References
  • * Wage advances, RS 01401.100
  • * Advance pay to members of the Uniformed Services, SI 00830.540B.2.
  • * Loans, SI 00815.350
The materials available at this web site are provided free of charge, for informational purposes only, and without warrant by True Link Financial, Inc., and are not legal advice or Social Security benefits advice. You should contact your attorney to obtain advice with respect to any particular issue or problem, or the Social Security Administration with any general inquiries. Click here to view this section of the POMS on the Social Security Administration website.