From: Jim Gashel 
Subject: Re: when to report ernings to Social Securrity
Hello Pete and fello Federationists:
I received Pete's message about when to report earnings to Social Security
on December 20, but I was not able to answer my e-mail during the
holidays.  Anyway, I do have an answer, so here goes:
The person who just gets a job should report earnings as soon as
documentation of the amount is available.  This would normally be in the
form of the first pay stub.  Reporting before that time is not a bad idea,
but you must be certain that the amount of earnings you are reporting is
correct.  The pay stub is the best evidence of the actual amount of
earnings.  
Also, here are some other things to remember:  For SSI purposes, the
reduction or increase in benefits, caused by a change in earnings, affects
benefits two months after the change occurs.  In other words, if an SSI
receipient starts a job in January, 1997 and makes a timely report to
Social Security, the change, if any, in the SSI payment due will not be
seen until March, 1997.  
Also, Remember that the Social Security administration goes strictly by
the information they have on file about earnings.  If a change in earnings
occurs, either up or down, the person's SSI benefit will not be changed
appropriately and in a timely way unless the change is reported in a
timely way.  
By change, I really mean any change.  For example, most months are four
work-week months, but two months during each year generally have five work
weeks.  I believe that will be the case in January, 1997.  Put another
way, January will be a three pay check month for many people who are paid
every two weeks.  What counts is how much money you receive in a
particular month.  If the information on file at the Social Security
office shows an income amount that is based on two pay checks, but in one
month you receive three, a change has occurred.  If that change is not
reported, it could lead to an overpayment.  If the overpayment was caused
by not reporting, you could be forced to repay the money even though you
cannot really afford to do so.  
Also, If you report an increase in earnings based on the fact that a month
in question will be a three pay check month, remember to report a decrease
in earnings for the next month, which will revert back to a two pay check
month.  This may seem like a lot of reporting, but helps to avoid being
liable for an overpayment.  If you don't report these events, the Social
Security Administration will eventually discover the problem during an
annual redetermination.  At that time it will then be found that an
overpayment in benefits has occurred based on a failure to report
earnings.  Reporting regularly is the only way to avoid this kind of a
problem.  
When I say reporting, I mean to be saying that you should do more than
simply calling the Social Security Administration's 800 number.  The best
way to report is by doing so in writing.  I have devised a very simple
form for this purpose, but all it really takes is a one page letter.  The
letter must have your Social Security number on it, your name and address,
and the change which has occurred.  If the letter is taken into the
office, you should take a second copy which you have the person at the
front desk date stamp for you.  This is your proof of reporting.  Always
save the copies of work reports so you can demonstrate later that you did
report.  Then if an overpayment develops, you may be able to get it waved
based on hardship.  If you cannot prove that you reported, you cannot get
a waver.  
Finally, remember this:  A change in earnings of an SSI receipient also
means a change in work expenses.  When earnings increase, or begin, the
taxes being withheld also increase, or begin.  Don't forget to report
changes in work expenses as well as changes in earnings.  Both types of
changes can affect SSI.  Changes in work expenses can moderate, or
eliminate entirely, the decrease in benefits that in increase in earnings
may cause.  Therefore, don't forget to report the changes in work
expenses.  If you do not do so, The Social Security Administration will
not be figuring the SSI benefit correctly, and the error will normally be
to its favor, not yours.  
That's about it for reporting, but remember to do it in a timely way and
do it in writing, with changes in work expenses included.  
Thanks, 
J. G.
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