Lost earnings and lost earning capacity are a key element of damages in many personal injury, wrongful death and employment litigation cases.  Documenting a plaintiff’s earning history can be complicated. One of the best sources for earnings history is the summary Social Security Earnings Statement. It is available for all citizens and legal residents, is updated annually by the Social Security Administration, and can be accessed for free at www.ssa.gov.

The summary Social Security Earnings Statement shows two amounts for each year: taxed Social Security earnings and taxed Medicare earnings (including self-employment earnings). Because some wages are not subject to Social Security or Medicare taxes, the report does not always show a person’s total earnings. However, it provides a consistent data on a person’s earnings for all the years he or she worked. The summary statement also shows years for which there were no earnings, providing an indication of possible gaps in employment. The summary statement will also if there are any years with unusually high or low earnings, which might require further clarification.

A detailed Social Security Earnings Statement is also available. The detailed version shows employer names, addresses, and Social Security reported earnings for each employer and each year. Counsel can obtain a detailed Social Security Earnings Statement by filing a written request with the Social Security Administration.  There is a fee of $115 for the information and the Social Security Administration has up to 120 days to process the request. 

There are other documents that provide useful information about a person’s income. Personal injury attorneys should be familiar with the specific information each type of document provides and how to obtain the document.  To read more about how to obtain and use these additional sources, please see the RPC white paper Sources of Data on Earnings and Work History.

The white paper was written by Mary Hoane, CPA/CFF RPC’s Senior Consultant and Forensic Accountant. If you have questions about the white paper you can reach Ms. Hoane at mhoane@rpcconsulting.com. Ms. Hoane is part of RPC’s personal injury team, which also includes Certified Life Care Planners, economists, physicians, a Certified Vocational Consultant, a legal nurse consultant, and two Certified Rehabilitation Counselors. More information on RPC’s personal injury services is available here.