.04 Lag Quarters
(07/01/09 – 09/30/09)
A lag quarter is a current or preceding year's earnings that do not display on QCIN.
Determine whether lag quarters, in combination with verified quarters of earnings, displayed on QCIN, equals 40 or more.
When the number of quarters of earnings equals 40 or more, verify earnings in one of the following ways:
Through HOSC
From the applicant
Refer the applicant to SSA for verification
(When the number of quarters of earnings are in dispute, see Approval Pending 40 Quarters)
When quarters of earnings do not equal 40 or more, the following apply:
Determine the number of lag quarters in a year by dividing the noncitizen's annual income by the amount given for the year listed in the Quarterly Earnings Table. This is the number of quarters of earnings.
Do not count more than four quarters in a year.
Do not use future quarters.
When the Quarters of Coverage are from 1977 and earlier, the following apply:
For each quarter in which a participant was paid $50 or more in wages one quarter is earned. (Including agricultural wages for 1951 - 1954)
For agricultural wages paid during the year for the years 1955 through 1977, one quarter is earned for each $100.
Four quarters are earned for each taxable year in which a participant's net earnings from self-employment were $400 or more.
For Quarters of Coverage from 1978 and later, credits are based solely on the total yearly amount of earnings. Obtain the number of creditable Quarters of Coverage by dividing the noncitizen’s total earned income by the amount for the year. (See Quarterly Earnings Table)
NOTE When determining quarters of earnings after December 1996, see Accumulating 40 Quarters.
Use the following sources to verify Lag Quarters:
Applicant's copy of a federal or state tax return
Applicant's personal records and statements
Employer prepared earnings statement
IRS copy of the applicant's tax return
Pay envelopes, vouchers, and similar unsigned employer earnings statement to the applicant, or a state or federal agency
Records of state UI agencies
Statement of earnings signed by the custodian of the employer's records
Timely filed self-employment tax forms
Union records
W2 or W2c forms
Referral for Benefits (FA-009)