Earnings Test
There earnings test consists of three main parts:
AET, Deduction Rate, MET
There are two different types of earnings:
Wages & Self-employment
Annual reports are earnings determined for a (blank) year.
Prior
The MBR LAF status will normally change from "current pay" to this when an I/P is summarized.
Deferred status (deferral) (LAF D2, D6, D9, etc.)
Any entitlement month, before FRA, in which a beneficiary does not earn over the allowable monthly exempt amount.
Non-service Month
We use the Earnings Test to measure:
The work activity of AUX/SUR beneficiaries to determine the amount of benefits payable to them;
The extent of a beneficiary's RIB and the amount if any to be deducted from benefits payable to the NH and AUXs
There are two different types of exclusions:
Special wage payments & Self-employment loss/exclusions
When A/R information is received, EE's are calculated & charged based on a worker's actual earnings. Once an annual report is processed, the beneficiary incurs (blank).
Permanent deductions (plus a partial payment month in some cases)
LDOs usually occur for earnings reported in a (blank) year.
Prior (Most cases we receive an amended Annual Report)
Located on the Benefit Computation Menu, which function is needed for adjusting rates for AUXs on the MBR with work involved.
The earnings test does not apply to:
1) any disable beneficiary
2) divorced spouses based on NH's earnings
3) Work outside the US not covered by SSA regulations
4) Income received from savings, investments, pensions, or insurance
The loss is subtracted from wages earned during the year to determine earnings for deduction purposes.
SE Loss
A beneficiary is required by law to file an annual report if he/she:
1) was entitled to at least one month's benefit during the year
2) earned more than the yearly exempt amount
3) was under FRA for at least one month of the year
4) received benefits for at least one month of the year before attaining FRA
I/Ps occur in the (blank) year based on an amended report received for the worker's estimated earnings.
Current
This rule applies for self-employment income, specifically a person devoting time towards their business and performing substantial services.
The 45-Hour Rule
Exempt Amount
1) Be engaged in a trade or business
2) have net earnings from self-employment
Letters sent to select beneficiaries during the course of the year requesting a revised estimate of earnings for the current year, as well as a future year estimate.
Mid-Year Mailers (MYMI)
After the LDO or I/P has been completely recovered, this is annotated to the PHUS record
Event 003 LAF D TERM
The initial grace year is also known as the (blank); it is annotated on the BENE ENT data line of the MBR.
Last Monthly Earnings Test Year (LMETY)
When a person reports on a (blank) year basis, the earnings are manually prorated to each calendar year and posted to his/her earnings record.
Fiscal
Vacation pay, sick pay, paid leave, and bonuses are just a number of (blank) excluded from earnings or maybe counted as earnings for periods different from those in which they were paid.
(SWP) Special Wage Payment
Inputting a work estimate or annual report into this system can update the data to the MBR. A MACADE action may be needed if the input is excepted.
POS
If an I/P is summarized in the current year and benefits are deferred immediately to recover, this PHUS event will be built.
Event 001 New LAF D
Taxable year in which the monthly earnings test applies. (Three types)
Grace Year (initial, Year following a break in ent, Termination)