TN 23 (09-98)

A. Description of match

1. Comparison

The match compares the annual earnings amount as reported on Form W-2 or Schedule SE to the amount on the SSR for the tax year. The MEF data may constitute wages, net earnings from self-employment, or sheltered workshop payments. When the MEF data indicate significant unreported or underreported earned income, a K6 or K7 diary is set and controlled on the Post Entitlement Operational Data Store (PE ODS) system. The discrepancy can be determined by reviewing a Detailed Earnings Query (DEQY) printout and comparing it to the information posted to the SSR. The FOs must resolve the discrepancy, update the SSR, determine past and continuing SSI eligibility, and pursue overpayment recovery.

NOTE: In cases where the beneficiary denies the earnings in question; see RM 03870.057 When Earnings May Be Transferred.

2. Frequency of Match

The initial release of MEF cases coincides with the first redetermination release of the fiscal year. A supplemental release is usually scheduled for March.

3. Generation of Diaries

a. K6 Diaries

If the date of eligibility is in January of the tax year involved or earlier, the interface will set a K6 diary if the recipient's or deemor's earnings on the MEF exceed the amount on the SSR by $1,000 or more.

b. K7 Diaries

If the date of eligibility is later than January of the tax year involved, the interface will set a K7 diary if a deemor's earnings exceed the amount posted on the SSR by $2,000 or more and either the MEF contains an amended earnings report or the SSR does not reflect any earnings for the deemor.

c. The diaries are suppressed if:

• The SSR already has a K6 or K7 diary; or

• The SSR has a payment status other than CO1 or MO1; or

• When the earnings are for a deemor, the SSR shows that the deemor is receiving assistance based on need (ABON).

B. Procedures — no development/limited development/full development

Since the MEF interface involves only SSA computer records, it is not covered by the Computer Matching and Privacy Protection Act.

1. When Development Is Not Required

You are not required to do any development for a MEF earnings diary if the earned income could not affect SSI eligibility or payment. You may delete the diary without making any contact to verify the amount of income or when it was received. In this case, do not transmit the earned income to the SSR.

An example of this is when the earned income is for an ineligible parent, but the deeming allocations for ineligible children in the household would mean there could not be “deemed income” the eligible child even if all the earned income were received in one month in the year.

2. When You Can Do Limited Development

See SI 02310.007A. for rules for Limited Development.

3. When You Must Do Full Development

If the criteria for “NO DEVELOPMENT” and “LIMITED DEVELOPMENT” do not apply, you must follow the instructions in SI 02310.007B. for FULL DEVELOPMENT.

C. Procedure — coordination with other work

1. Redeterminations and Other Posteligibility Activities

Coordinate MEF match development with scheduled FO redeterminations or other pending posteligibility activity (e.g., other interface alerts, continuing disability review, representative payee accounting).

2. Title II Issues

1. If the earnings are for an individual who also receives a title II disability benefit, determine if there is a need for a review of the work activity.

2. If the earnings belong to a recipient who does not receive a title II benefit, determine whether the recipient is eligible for title II benefits.

3. Work Incentives

Use this opportunity to inform recipients about work incentives. Emphasize future reporting responsibilities and advise blind/disabled individuals of the SSI work incentive provisions. (See SI 02302.006, SI 00820.500 and SI 00870.001.)

D. Procedure — clearance

1. Identify Records

Identify records with MEF diaries (K6, and K7) by accessing the PE ODS system. Obtain an SSID to determine to whom the MEF data pertain. (See SM 02001.600.)

2. Obtain DEQY

Obtain a DEQY for the individual to obtain specific MEF data — i.e., amount of the wages and name and address of the employer.

3. Disclosure

The MEF data contain tax data. Therefore, follow the instructions in SI 02310.040 - SI 02310.042.

4. Contact Recipient

If development is required per SI 02310.007B., contact the recipient according to SI 02310.042 to discuss the MEF data.

5. Income Development

Do not develop further if the earnings were for a period prior to eligibility and the taxpayer alleges that the income stopped prior to the first month of eligibility. Obtain evidence to verify the recipient’s or deemor’s countable earned income.

If the individual agrees with the MEF data, request evidence from the individual to establish his/her countable income.

If he/she has insufficient evidence of SEI or alleges no SEI, following the instructions in RS 01804.400 ff.

The MEF income data represent the amount received in a year. Obtain a monthly amount for SSI purposes if the income constitutes countable income.

• See SI 00820.100 - SI 00820.160 for wage development.

• See SI 00820.200 for self employment income development.

• See SI 00820.300 for sheltered workshop payment development.

• See SI 00820.005 for sick pay development.

• See SI 02310.005C.5. regarding administrative finality. The SSR transaction date (SE transaction code) is the date of the “affirmative action in writing” .

• Destroy the DEQY printout per SI 02310.040.

6. Clear the Diary

1. Documentation — MSSICS — Individual Has Earned Income

   • Document wage development on the IWAG screen (MSOM MSSICS 016.003 );

   • Document self-employment income development on the ISEI screen (MSOM MSSICS 016.004 );

   • Document sheltered workshop payment development on the IWAG screen (MSOM MSSICS 016.003 );

   • Document sick pay development on the ISPE screen (MSOM MSSICS 016.002 ).

2. Documentation — non-MSSICS — Individual Has Earned Income

   See references in SI 02310.055D.5.

3. Diary Clearance Input

   • MSSICS - Complete the DDOC screen (MSOM MSSICS 022.012 ) and build transaction SSR.

   • Non-MSSICS - Transmit earned income to the SSR (See SM 01305.101.) Transmit diary deletion to the SSR via SSA-1719B input. (See SM 01301.220.)

7. Scrambled Earnings

If the earnings do not belong to the recipient or deemor, scrambled earnings may be involved. Follow RM 03870.004B.1., NOTE, for resolution.

8. MEF Correction

If correction of the MEF is necessary, see RS 01405.001. See RS 01505.031 for cases involving State and local government employers.