Ask Larry

Is It Accurate That A Percentage Of My Income Won't Count If I'm Not Able To Do As Much As My Co-Workers?

So here is my question as i hace been told diffent things from ssa. If i was esrningt min wage id never reach the SGI? If i earned 50/hr id be therr in just a few hours. Its really how MUCH u can work that tests your physical limits. I was told that after the 9 month period ssa would contact my emoloyer to determine how disability affects my work. Assuming i was determined that i could only do 75% of what the other stagehands can do, then only 75% of my income would be counted towards ny monthly limit, essentially adding an additional 25% to the limit. Is this accurate

Hi. My answer assumes that you are working while collecting Social Security disability (SSDI) benefits, and you're trying to determine whether or not your earnings would be classified by Social Security as 'substantial gainful activity' (SGA). If so, it sounds like what you were told is basically accurate. However, if you're receiving Supplemental Security Income (SSI), my answer would NOT apply.

If a person works at above SGA level while collecting SSDI benefits, it can cause their benefits to be suspended or terminated. The monthly SGA amount in 2022 is $1350 for non-blind individuals, and $2260 for blind individuals. As you mention, those monthly amounts apply regardless of the hourly wage that a disabled worker is paid.

However, in some cases a worker is paid more than the true value of the services that they provide to their employer. That is referred to as subsidized employment, and it most commonly applies to sheltered work. When subsidized employment is involved, Social Security only counts the true value of a disabled worker's services when making a determination on whether or not their earnings are above SGA level. So, for example, if a subsidized worker is paid $1600 per month but if the worker only performs 75% of an average worker duties, Social Security could conclude that the worker is only actually earning $1200 per month (i.e. $1600 x .75 = $1200). If so, that worker's earnings would then be considered to be below SGA level. This concept is detailed in the following section of Social Security's operations manual: https://secure.ssa.gov/apps10/poms.nsf/lnx/0410505010.

If you are receiving SSDI benefits while working, though, you need to be aware that earning more than SGA level could cause your benefits to stop. Establishing a subsidy that would reduce a worker's earnings to below SGA level is a judgment call on the part of Social Security. Their judgment should be based on all of the various facts involved in the worker's employment situation, but there is no guarantee that a subsidy will be established.

Best, Jerry

Posted: 
Sep 7 2022 - 1:00pm
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