Does classifying the SRI payment as wages impact a retirees benefits if he or she is receiving social security income, but is not yet exempt from the “earnings test” based on age?
Yes. See the Social Security Admministration Web site for more information: “Sometimes people who retire in mid-year already have earned more than the yearly earnings limit. That is why there is a special rule that applies to earnings for one year, usually the first year of retirement. Under this rule, you can get a full social security check for any whole month you are retired, regardless of your early earnings.” – How Work Affects Your Benefits “If some of your retirement benefits are withheld because of your earnings, your benefits will be increased starting at your full retirement age to take into account those months in which benefits were withheld.
