A TWP is based on which type of wages?

The correct choice is based on gross wages because the Trial Work Period (TWP) considers the amount of money a beneficiary earns before any deductions like taxes or other withholdings are made. This means that the focus is on the total earnings a person receives, providing them with an opportunity to work without the immediate pressure of losing their benefits, as long as their gross income does not exceed the TWP threshold established by Social Security.

Gross wages give a comprehensive view of an individual's earning capability during the TWP, which is crucial for understanding how work and income can affect their eligibility for benefits. This measurement is especially relevant because it directly influences the calculation of subsequent earnings and the transition into different phases of benefits, such as the Extended Period of Eligibility (EPE). Thus, basing the TWP on gross wages ensures a fair assessment of a beneficiary's testing of their ability to work while benefiting from Social Security programs.