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Past Contributions & Credit Adjustments

Figure 1: Past Contributions & Credits Adjustment Framework and Process

Past Contributions & Credit Adjustments allows the Social Security Administration to capture and process historical contribution transactions that were previously recorded manually. This ensures that past contributions are correctly reflected in the system with appropriate earnings, contributions and credits, thereby enabling accurate processing of future benefit claims. The module supports the entry of past contributions and payments spanning multiple years, ensuring individuals receive proper credit for their contributions.  In addition, users can adjust or modify totals of earnings, contributions or credits for any period monthly or yearly period in the past.  This ensures that mistakes from the past can be corrected as required in a manner which maintains data integrity by maintaining the link between such earnings, contributions or credits.

Figure 1: Past Contributions Entry Form

Features and Processes

General Setup and Configuration

  • Defines general parameters for processing past contributions.
  • Configurable numbering system for Past Contribution Transaction Numbers (PCTN).
  • Defines the First Contribution Year, ensuring no contributions can be entered before this date.
  • Prefix and postfix options for transaction numbering.
  • Configurable Credit Units and Credit Earned Rates to reflect different historical rates.
  • Credit Units setup to define contribution calculations.
  • Approval workflows for reviewing and authorizing past contributions.

Defining Past Contribution Transactions

  • Users can create new Past Contribution Transactions (PCT) manually.
  • Monthly PCT include employee details, contribution year, and employer data
  • PCT for Yearly Transactions includes:
    • Year Wages
    • Year Total Contribution
    • Year Contributions Paid
    • Year Credits Earned
    • Year Credits Awarded
  • PCT for Monthly Transactions includes:
    • Month
    • Employer EIN
    • Employer Name
    • Month Wages
    • Job/Position
    • Month Employer Contribution
    • Month Employee Contribution – the employee contribution amount will be automatically calculated from monthly wages and displayed here.
    • Month Total Contribution – the total contribution amount (employee+employer) will be automatically calculated from monthly wages and displayed here
    • Month Contributions Paid
    • Month Credits Earned
    • Month Credits Awarded
  • The system allows for batch entry of multiple-year contributions within a single transaction.
  • Import functionality supports importing records from manual forms for past contributions.

Types of Transactions

  • Past Contribution Transaction – allows for manual entry or upload of earnings, contributions and credits which were not previously existing in the application or individual’s history
  • Credit Adjustment Transaction – allows for the adjustment of existing records of earnings, contributions and credits by entering the adjusted values

Data Entry and Validation

  • Past contributions include key details such as:
    • Employee demographic information (name, SSN, date of birth, address, job title, etc.).
    • Contribution type (monthly or yearly contributions).
    • Employer and employment details.
    • Wages, contributions, and credits earned.
  • Data fields are fully configurable, allowing certain fields to be marked as mandatory or optional.

Workflow for Past Contributions Processing

Creating Past Contributions

  • Users enter past contribution transactions manually or upload from a file.
  • Transactions are assigned unique identifiers and linked to employees.

Reviewing Past Contributions

  • Past contribution transactions are reviewed by authorized personnel.
  • The system verifies contributions and credits earned before approval.

Approval of Past Contributions

  • Approved past contributions become part of the employee’s social security record.
  • Transactions are recorded under Accrued Credits for benefit eligibility.

Posting Past Contributions

  • Once approved, past contributions are posted to the system.
  • Posting ensures historical transactions are available for benefit calculations.

Editing and Updating Past Contributions

  • Users can search past contribution transactions by PCTN, Employee SSN, Employer ID, and other filters.
  • Authorized users can update details before review and approval.
  • Once posted, contributions cannot be modified without a separate adjustment.

Adjusting (Past) Contributions

  • Users can search past contributions by PCTN, Empoyee SSN, Employer ID and other filters
  • Contributions can be retrieved based on monthly or yearly totals, regardless of whether they were entered through the “Past Contributions” process or through the regular contributions filing or import process
  • Users can adjust both types of existing records of contributions processed in the past by reviewing the existing records on earnings, contributions and credits for a given period and entering the correct or adjusted values for earnings, contributions and credits
  • The application then allows the user to submit, and others to review and post the new records and overwrite the existing records
  • The module ensures data integrity by mandating corresponding values for earnings, contributions and credits whenever one of those values is adjusted, so that the link between earnings, contributions and credits remains in tact

Deleting Past Contributions

  • Past contributions can be deleted before they are reviewed and posted.
  • Users receive confirmation prompts before deletion to prevent accidental loss of data.
  • Users can be given special access rights to allow them to delete past contributions after posting.

Security and Compliance

  • Only authorized officers (managers, supervisors, auditors) can review, approve, and post past contributions.
  • Tracks all historical contributions for auditing and compliance purposes.
  • Ensures contributions are processed in accordance with social security laws and regulations.

Integration with Other Modules

  • Benefit Claims Processing: Ensures historical contributions are considered in benefit eligibility calculations.
  • Contribution Filing & Payment: Provides a complete history of all contributions made by an individual.
  • Employee and Employer Records: Links past contributions to employment and payroll data.
  • e-Services Portal: Allows individuals to view their updated contribution history online.

Past Contributions & Credits Adjustments is a vital module for ensuring that historical social security contributions are accurately recorded and integrated into the system. By capturing past transactions, verifying their accuracy, and linking them to individual records, the module enhances benefit eligibility calculations and ensures compliance with regulatory requirements. With structured workflows for review, approval, and posting, it provides a seamless way to maintain accurate social security histories for employees and employers alike.

 

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