We, at MPES, have noticed an uptick with the number of Disability Beneficiaries that are unaware of their responsibility to report their earnings to SSA on a regular basis. We’d like to take this opportunity to review to whom, when what and how to report earnings.
- Timely reporting is important so that your benefits are paid correctly and reduce the chance of overpayments. An overpayment occurs when Social Security has paid you more than you should have been paid in accordance with the rules of your benefits. Understanding how working affects your benefits and how to report your earnings can make a big difference in preventing overpayments with your transition to work.
- Some people receive more than one benefit SSDI & SSI concurrently. You will need to know what benefit you receive so that you know the reporting method(s) available. Those that do receive more than one benefit are required to report their earned wages separately because they are two separate disability programs that are treated differently with different rules. (Continue reading to see how to report to each)
- Receiving SSDI & SSI – If you receive both SSI and SSDI, when you report your earnings, it may be helpful for you to make 2 copies of your information; 1 copy for Social Security staff who handle the SSDI program and another copy for staff who handle the SSI program. Having 2 copies of your wage information may make it easier for Social Security to process your wages.
To whom must you report wages?
Any time a beneficiary participates in work that results in earned income, Social Security requires that income to be reported. If you are a Social Security disability beneficiary and receive Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI) benefits or both, you are required to report your wages to the Social Security Administration (SSA). If you do not know which benefit you receive, contact the Ticket to Work Helpline at 1-866-968-7842 or 1-866-833-2967 (TTY) to obtain information about what type of benefit you are currently receiving from SSA. You can also open a my Social Security account at www.ssa.gov/myaccount to verify which benefit you receive or you can contact Social Security at 1-800-772- 1213.
When to report wages?
When you start a new job, you must notify SSA and report your wages within 6 days of the end of the month. You can report your wages by mailing or bringing pay stubs to your local Social Security office. If you decide to report your earnings by mail, you may want to use “certified” mail to protect the security of your information and ensure that it arrives at Social Security. Note: there is a cost to send certified mail and Social Security does not require you to use it.
What should you report to SSA?
You should report new income or any changes in work activity as soon as they occur.
- Earnings from work include:
-
- All earnings (whether from wages, self- employment, or both)
- If you start or stop work
- If the amount of your pay or hours of work change
- If you start paying for items or services that you need for work due to your disability (medicines, co-pays, medical devices, wheelchairs, therapy or counseling, transportation cost, etc.)
- If you receive extra help to do your work because of your disability (extra breaks, a job coach, or a mentor)
- Other Income to Report that SSA Does Not Consider “Countable Income”:
- Workers Compensation or Public Disability Benefits
- Sick Pay
- Vacation Pay
- Pensions from work not covered by Social Security
- How often you receive payments
- When the payments change or end
- Paystub & Information Needed to Report:
- Your name and Social Security number
- Name of your employer
- Number of hours you work each week
- Hourly rate
- The date you began working
How to report wages?
Here are wage reporting options for both SSDI & SSI:
- “My Social Security” Online Account:
- To reports wages online, you must have your own my Social Security account. To set that account go to https://www.ssa.gov/myaccount/
- When you first report using this method, you must have the Employer Identification Number (EIN) for your employer. The EIN may appear on paystubs and W-2 forms or you may need to ask your employer.
- If this is a new employer, you must telephone SSA to ask them to add the EIN number to your My Social Security account so that you can use online reporting. This method issues you a receipt for your work report.
- If you have already reported work to SSA for this employer, you can begin adding wages.
- You cannot use this method of reporting if you are using supports which decrease the wages SSA counts, like impairment-related work expenses (IRWEs).
- Fax or mail paystubs to your local SSA office:
- Hand delivering copies at your local SSA office may not be possible at this time due to COVID-19.
- If you have receipts for disability-related items or services (IRWEs) needed to work, include these with the paystubs you send to SSA.
- Write your Social Security number on each of the paycheck stubs, make copies and keep your copies in a safe place with any SSA notices.
- SSI Only can also report by:
- Telephone – Social Security representatives are available to talk about your wage reports from 7 a.m. to 7 p.m. toll free at 1-800-772-1213 or 1-800-325-0778 (TTY).
- Mobile app – If you have a smartphone, Social Security’s SSI mobile wage reporting app provides easy ways to report your wages.
- Sign up online to receive a monthly e-mail or text message wage reporting reminder. To sign up online go to https://www.ssa.gov/benefits/ssi/wage-reporting.html
If you have more than one job and report wages online, be certain to report each job separately.
If you are reporting self-employment, you will be reporting Net Earnings of Self Employment (NESE) after all business expenses. For more details on reporting self-employment you will need to contact the SSA office at 1- 800-772-1213 (TTY 800-325-0778).
That is the nuts and bolts of wage reporting. Call us with question or for more information 888-359-2366
Or view the resource links used for this blog:
https://www.nationaldisabilityinstitute.org/wp-content/uploads/2020/11/wage-reporting-factsheet-2020.pdf
https://www.ssa.gov/disability/Documents/T2%20Reporting%20%20Disability%20doc%20final.pdf
Until next time!
~Tina tina@mpes.net
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