SI 00820: Earned Income

Effective Dates: 01/16/2018 - Present

TN 48 (11-08)

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 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.