Social Security earnings test confusion - do March wages paid in April count for which month?

For the Social Security earnings test, what matters is when the money was EARNED, not when it was paid. So work you perform in March counts toward March's earnings limit, even if the actual payment hits your bank account in April. This is different from how SS treats income for tax purposes (where it's the year you receive the money). For the earnings test, it's about when you performed the work. Make sure you keep good records of exactly when you earned specific amounts in case SSA ever questions it. Your pay stubs should show the pay period dates which is what they'd look at.

i thought it was when you get paid not when u earn it??? thats how my cousin's retirement worked last yr. SS counted the month he got the $$ not when he worked. but maybe rules r different for everyone idk

The SSA follows what's called the "wage earner test" which means they assign earnings to the month in which you PERFORMED the work, not when you received payment. So your March work counts for March even if paid in April. However, there's a bit more to consider with the annual earnings test. For 2025, if you're under FRA for the full year, you can earn up to $22,875 before they start reducing benefits (they reduce $1 in benefits for every $2 you earn above the limit). If you'll reach FRA during 2025, you get a higher limit of $60,900 for the months before reaching FRA, and they only reduce $1 for every $3 over the limit. Are you tracking your projected annual earnings as well as monthly?

Not a dumb question at all! When I retired in 2023, I had the EXACT same confusion. Everyone told me different things including the person at my local SS office (who was wrong btw).

I went through this exact headache last year!!! Spent 3 DAYS trying to reach someone at Social Security to get a clear answer. Every time I called, I'd wait for 2+ hours and then get disconnected. So frustrating!!! I finally used a service called Claimyr (claimyr.com) that got me connected to an actual SSA agent in under 20 minutes. The agent confirmed it's when you EARN the money, not when it's paid. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU Saved me so much stress and I got official confirmation. The agent even noted it in my file in case there were questions later.

When I was in your situation I just stopped working the month before I filed for SS benefits to avoid the whole issue. Made it much cleaner paperwork-wise. Might be something to consider?

Sorry to hijack but I have a related question - what about annual bonuses? I get a yearly bonus in March for the previous year's work. Does that count toward March's earnings test or is it attributed to the previous year since that's when I technically earned it?? The SSA website is totally unclear about this!

This is y i just waited till my FRA to claim... too many rules and they take ur $$ back if u mess up!

One more important thing to know: if you earn over the limit and have benefits withheld, SSA will recalculate your benefit amount when you reach FRA to give you credit for the months they withheld benefits. So you're not permanently losing that money - it will increase your monthly benefit amount starting at FRA. Also, the earnings test only applies to earned income (wages, self-employment). It doesn't apply to investment income, pension payments, or other unearned income.

Just wanted to add one more practical tip from my experience - when I was dealing with this same situation, I created a simple spreadsheet tracking my work dates vs. pay dates for each pay period. This made it super easy when SSA asked for documentation later. Also, if your employer has HR software where you can access your pay stubs online, screenshot or download them regularly. I learned the hard way that some companies only keep electronic pay stubs available for a limited time, and you'll want those work period dates if SSA ever audits your earnings. Good luck with your retirement planning! You're being smart to think through all these details in advance.

I'm in a similar boat - turning 64 next month and planning to start benefits while still working part-time. One thing that helped me understand this better was looking at the SSA's Program Operations Manual System (POMS) section RS 02501.030, which specifically states that wages are credited to the month in which the services were performed, regardless of when payment is received. Your employer's payroll schedule (1st-30th/31st pay periods) actually makes this easier to track since the pay stub will clearly show which month's work each payment covers. Just make sure to keep those stubs organized by work month, not payment month. Also, since you mentioned you're planning to stop working in September - remember that there's a "retirement test grace year" rule where they apply a monthly test instead of the annual test for your first year of benefits. So even if your total annual earnings exceed the limit, you won't lose benefits for any month where your earnings are under the monthly limit ($1,906 for 2025). Sounds like you're being very thoughtful about this transition - that preparation will pay off!

This thread has been incredibly helpful! I'm in a similar situation at 62, planning to claim benefits next year while working part-time. The consensus here about earnings counting when work is performed (not when paid) matches what I found in SSA Publication 05-10069, but I was second-guessing myself. One thing I'd add for anyone in this situation: if you have irregular pay schedules or do contract work, it gets even trickier. I do some freelance consulting where I might invoice in March but not get paid until May. From what I understand, that income counts for the month I actually performed the work, but tracking it requires even more detailed records. Has anyone dealt with self-employment income and the earnings test? The rules seem more complex when you're not on a regular W-2 payroll schedule.

As someone who recently went through this exact same situation, I can confirm what others have said - it's definitely when you EARNED the money, not when you received it. I was 62 when I started benefits last year and had the same payroll timing issue. What really helped me was creating a simple calendar marking when I worked vs when I got paid, and keeping all my pay stubs filed by the work period dates shown on the stub (not the deposit date). My employer's payroll also runs a month behind, so March work gets paid in early April. The key thing that gave me peace of mind was getting this confirmed directly with SSA. I used their online messaging system through my Social Security account - took about a week to get a response, but they confirmed it in writing which I saved for my records. One small tip: if you're cutting it close to the monthly earnings limit, consider asking your employer if they can provide a letter stating your exact work dates for each pay period. I never needed it, but having that documentation ready made me feel more prepared. You're being smart to plan this out in advance rather than trying to figure it out after the fact!

I'm so glad you asked this question! As someone who just started collecting Social Security at 63 while still working part-time, I went through this exact same confusion about 6 months ago. The timing of when earnings are counted versus when you get paid is definitely one of those things that can keep you up at night worrying about it. Everyone here has given you the correct answer - it's absolutely when you PERFORM the work that counts, not when the paycheck hits your account. I learned this the hard way by initially tracking everything by payment dates and then having to redo all my calculations when I realized my mistake. Since you mentioned your employer uses 1st-30th/31st pay periods, you're actually in a good spot because those dates on your pay stub will clearly show which month's work each payment covers. I'd suggest starting a simple tracking system now - even just a basic Excel sheet or even handwritten notes showing work dates vs pay dates for each check. One thing I wish I'd known earlier: SSA can be pretty reasonable if you accidentally go over the limit in a month and can document exactly when the work was performed. They're much more understanding when you have good records showing you were trying to comply with the rules. You're being really smart to think through all these details before your retirement date. Best of luck with your transition!