When Does Social Security Update Yearly Earnings?
Learn how and when the Social Security Administration updates your yearly earnings record, vital for accurate future benefits.
Social Security benefits are calculated based on an individual’s lifetime earnings. Accurate earnings records are important for determining retirement, disability, and survivor benefits. Maintaining an updated and correct earnings history with the Social Security Administration (SSA) is important for securing rightful benefit amounts. Understanding how and when these records are updated helps individuals ensure their future financial security.
How Earnings Information Reaches Social Security
The Social Security Administration (SSA) receives earnings information primarily through reports submitted to the Internal Revenue Service (IRS). Employers report employee wages, tips, and other compensation on Form W-2, Wage and Tax Statement, which they file annually, typically by the end of January, for the previous calendar year’s earnings.
For self-employed individuals, earnings are reported when they file their annual income tax return, generally Form 1040 and Schedule SE. The net earnings from self-employment reported on Schedule SE are then transmitted to the Social Security Administration. This ensures that self-employment income is accurately credited to the individual’s earnings record.
After employers and self-employed individuals submit tax forms to the IRS, the IRS shares this earnings data with the Social Security Administration. This interagency data transfer allows the SSA to maintain each individual’s earnings history. The accuracy of this initial reporting directly influences the data the SSA receives and processes.
When Your Earnings Record is Updated
Earnings from a given calendar year are generally not reflected on an individual’s Social Security record until the following year. This delay occurs due to reporting deadlines and data transfer processes between government agencies. For example, earnings from 2023 typically appear on Social Security records by late spring or early summer of 2024.
Employers have until January 31st of the following year to furnish employees with their W-2 forms for the preceding tax year. The IRS also sets a deadline for employers to file these forms, typically by January 31st. Once the IRS receives all W-2s and self-employment tax forms, it processes this data.
After the IRS completes its processing, it transmits the earnings information to the Social Security Administration. The SSA then undertakes its own data processing to apply these earnings to individual records and calculate future benefit eligibility. This multi-step process, involving multiple government agencies and data volumes, contributes to the several-month lag before earnings are updated on an individual’s Social Security statement.
Viewing Your Social Security Earnings Record
Individuals can access their Social Security earnings record by creating a “my Social Security” online account. This secure online portal provides a convenient way to review an individual’s earnings history. The account also allows users to estimate future benefits and manage other Social Security-related information.
To establish an account, individuals generally provide personal identifying information, which is verified against government records. Once verified, users can navigate to their earnings record section to see a year-by-year breakdown of their reported earnings. This online tool helps individuals monitor their earnings history for accuracy and completeness.
Regularly checking this online record is important, especially after the typical update period for the previous year’s earnings. This allows individuals to identify any discrepancies or missing earnings that could affect their future Social Security benefits. The “my Social Security” account serves as the primary tool for this financial oversight.
Disputing or Correcting Errors
If an individual discovers an error or missing earnings on their Social Security statement, it is important to correct the discrepancy. Contact the Social Security Administration directly to report the issue. This can be done by phone, mail, or by visiting a local Social Security office.
When disputing an earnings record, individuals need to provide documentation to substantiate their claim. This evidence may include W-2 forms, pay stubs, federal income tax returns (Form 1040), and Schedule SE. The SSA uses these documents to verify the correct earnings amount and ensure it is credited to the individual’s record.
The SSA will review submitted documentation and investigate the reported discrepancy. While the timeframe for resolution can vary, the process generally involves verifying earnings with the employer or other reporting entities. Correcting inaccuracies in the earnings record is important because it directly impacts the calculation of future Social Security benefits.