Preventing Improper Payments: Wage Reporting Operations Support Manager Social Security’s Ticket to Work program

Course Objectives Define wage reporting Define overpayment Discuss the impact of beneficiaries not reporting earnings Identify ways to assist beneficiaries to report earnings Review Supplemental Security Income Telephone Wage Reporting (SSITWR) Provide alternative methods for reporting wages 2

What is Monthly Wage Reporting? Social Security’s way of ensuring accurate and appropriate benefits are paid Beneficiaries must report earnings by submitting: o Pay stubs o Overtime hours o Vacation pay o Bonuses Process prevents over/under payments 3

Social Security Disability Insurance (SSDI) and Bonuses Bonuses are spread over the months SSDI Example: If time is not specific then distribution over months up to a year. 4 Quarterly Bonus - $300 April + $100 plus wages May + $100 plus wages June + $100 plus wages

What is an Overpayment? When Social Security pays either a service provider or beneficiary more than what should have been paid 5 Service Provider o Repayment Agreement o Repayment Beneficiary o Notice Sent o Repayment

What is an Overpayment for a Beneficiary? Social Security Disability Insurance (SSDI) o Notice sent o All monies withheld o Withholding would start 30 days after the first notification Supplemental Security Income (SSI) o Notice sent o 10% of monies withheld o Withholding would start 60 days after the first notification Garnished income tax Negative reporting to Credit Bureau 6

What is the Big Deal? Preventing Overpayment maintains the integrity of Social Security SSI beneficiaries are consistently on the Government Accountability Office (GAO) Watch List Ultimately leads to unsuccessful work attempts under false premises Negatively effects the Ticket to Work program 7

Progress Check What are some implications of a beneficiary overpayment? A.SSI beneficiaries are consistently on the Government Accountability Office (GAO) Watch List B.Ultimately leads to unsuccessful work attempts under false premises C.Negatively effects the Ticket to Work program D.All of the above 8

Consequences: Not Reporting Work & Earnings Potential overpayments and underpayments for service providers o Timely reporting generally prevents overpayments o Timely reporting generally correlates to potential payment requests getting processed sooner Potential overpayments and underpayments for beneficiaries o Timely monthly reporting of work and earnings ensures that Social Security is aware of any change in earnings, which could impact the benefit amount. o Timely reporting prevents lump sum overpayment 9

How An Employment Network Can Help Beneficiaries Report Wages Explain wage reporting at the time of Individual Work Plan (IWP) and throughout Make it easy for clients to submit pay stubs to the EN o Stamped return envelopes o The ability to submit by fax or scan/ o EN to submit earnings to Social Security Send a wage reporting/pay stub reminder at the end/beginning of each month Offer an incentive for wage reporting 10

Progress Check What are some ways that you, the EN can assist a beneficiary with wage reporting? A.Explain wage reporting at the time of Individual Work Plan (IWP) B.Make it easy for clients to submit pay stubs to the EN C.Send a wage reporting/pay stub reminder at the end/beginning of each month D.Offer an incentive for wage reporting E.All of the above 11

What Social Security Needs to Know Name, address, phone number and Social Security Number Type of Social Security benefits received Name, address and phone number of employing company Name of direct supervisor Date of hire/date of termination Pay rate and average number of hours worked per week Pay dates 12

What Beneficiaries Need to Know Supplemental Security Income o Income is counted in the month that it was received o Accounts for earned and unearned income Social Security Disability Insurance program o Counts income in the month earned, not received o Trial Work Period effect o Social Security Form 821 Keep pay stubs Keep receipts 13

Progress Check Tom Ticketholder is an SSDI beneficiary and this month’s paycheck is $ Pay date: June 1, 2013 Pay period: May 17-May 30, 2013 Which month does Tom’s earnings apply for gross wages? A.June 2013 B.Both May and June 2013 C.May

Beneficiaries Can Request Benefit Suspension To avoid or reduce overpayment During Work CDR Conditions apply-see Social Security POMS DI Can help client notify Social Security Suspension month will not qualify for outcome payment

Procedures from the Operations Support Manager (OSM) EN submits payment request OSM sends notification of reported wages Appropriate office is flagged Ultimate goal is to get the beneficiary to report wages as soon as they are earned Any amount over $65 dollars can affect a benefit check (for individuals living alone) Note - $20 income disregard Beneficiary could receive improper or/overpayment 16

Example for SSI Recipients The maximum federal benefit for a SSI recipient living alone in 2014 is $721 SSI beneficiaries get to disregard their first $65 of earned income For every $2 earned above $65 each month, beneficiary lose one dollar from Social Security check (referred to as a 2 for 1 income disregard). 17

Example for SSDI Beneficiaries The average SSDI check is $1,148 in June Can earn up to the Substantial Gainful Activity (SGA) level Work incentives such as IRWE Entitled to nine month Trial Work Period SSDI recipients should report wages to their local field office in person. 18

$20 Income Disregard for Social Security 19

SSITWR Introduction Supplemental Security Income Telephone Wage Reporting Tool (SSITWR) 20

Who Is Eligible? Eligible SSI beneficiaries Beneficiaries receiving concurrent benefits i.e. Social Security and SSDI Social Security beneficiaries with prior earnings on file Ineligible SSDI beneficiaries Self-Employed Beneficiaries without earnings on file 21

How To Use Telephone Wage Reporting Before Calling Have: The Social Security Number of the person who is reporting wages (the caller). The Social Security number of the wage earner. The TOTAL monthly amount of gross wages for the wage earner. Gross wages are the amount of pay before taxes and other deductions. The caller’s name as it appears on their Social Security card. 22

Actual Call Wage earner calls Provides name and Social Security Number Caller keys in total gross earnings for the PREVIOUS month Best to place a call by the 6 th of the following month 23 IMPORTANT: Please be sure to call the SSITWR from a quiet location. Background noise may cause the report to fail.

Convenience of Telephone Wage Reporting For Beneficiaries Beneficiary saves a trip to the local Social Security Administration field office For Service Providers Earnings are verified in Social Security Administration system quicker which allows ENs to receive faster payments 24

What If SSITWR Is Not An Option? Beneficiaries should report the following to the Local Social Security Office o The gross, monthly wage amount for the prior month o The name of the wage earner o Their Social Security Number o Name of the person receiving SSI Report the monthly wage information by: o Sending a fax with the gross wage amount and applicable month o Mailing a brief letter with the gross wage amount and applicable month o Telephoning local field office o Going to your local field office to give the report in person 25

Progress Check What are some methods for reporting wages? A.Telephone Wage Reporting (SSI) B.Hand in pay stubs to the local field office C.Send a fax with the gross wage/month information D.Telephone the local field office 26

Best Practices Keep accurate records! Complete necessary forms Add gross earnings Apply for special work incentives Attach paperwork Sign forms Make a copy of forms and supplemental documents Mail form if applicable Save a copy for yourself 27

Key Points To Remember 28 Consistent and timely monthly wage reporting helps prevent SSI overpayments and underpayments. Service providers have an obligation to beneficiaries to reinforce wage reporting. Wage reporting affects both SSDI and SSI benefit amounts. Telephone wage reporting is only available for SSI recipients. Beneficiaries are also responsible for keeping accurate records.

Resources Social Security -telephone-wage.htmhttp:// -telephone-wage.htm -reporting-earnings.htmhttp:// -reporting-earnings.htm Beneficiary Assistance and Support Services (BASS) (Voice) (TTY) 29

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