Are earnings in WTU considered SGA for Social Security disability benefits?
The touchstone in disability cases is the ability to work. More specifically, the test is whether an individual can perform a Substantial Gainful Activity (SGA). One of the first tests of whether work is SGA is earnings.
In 2012, earnings of $1,010 per month (before taxes) suggests the work is SGA. However there are exceptions to this. One of these is for sheltered work as defined in 20 CRF404.1574(a)(3).
If you are working in a sheltered workshop, you may or may not be earning the amounts you are being paid. The fact that the sheltered workshop or similar facility is operating at a loss or is receiving some charitable contributions or governmental aid does not establish that you are not earning all you are being paid. Since persons in military service being treated for severe impairments usually continue to receive full pay, we evaluate work activity in a therapy program or while on limited duty by comparing it with similar work in the civilian work force or on the basis of reasonable worth of the work, rather than on the actual amount of the earnings.
The idea behind sheltered work is that an individual may not be earning all of what they are being paid. The value of the individual’s work may be half (or a different percentage) of the amount actually paid. The amount paid over the value of the work is a subsidy. Social Security only counts the value of the work and not the subsidy in determining if the work is SGA.
For may injured soldiers, before discharge from their branch of service, they may be placed into a Warrior Transition Unit (WTU) or similar program. While the soldier’s salary stays the same, the duties are greatly reduced.
I earn too much for Social Security disability benefits, what can I do?
To qualify for Social Security disability benefits you have to show that your disability prevents you from being able to work. In Social Security’s words, you have to show that you are unable to engage in a substantial gainful activity (SGA). SGA translates into a maximum dollar amount you are allowed to earn and still be potentially eligible for Social Security benefits.
For 2011, the most you can earn is $1,000 per month (before taxes or deductions). If you earn more than this, Social Security …
Is sheltered work or subsidized work a substantial gainful activity (SGA)?
To qualify for Social Security disability benefits you have to show that your disabilities prevent you from being able to work. In general, you have to show that you are unable to perform a substantial gainful activity (SGA).
However, there are exceptions to this general rule, including Subsidized Wages or Sheltered Work environments.
Social Security can only consider the money you earn in deciding if your work is a substantial gainful activity. Anything over the “reasonable value” of your work, may be a subsidy. Social Security cannot consider a subsidy, basically a “gift,” as earnings in determining if the work is a substantial gainful activity.
A subsidy is any compensation over the fair value of your work. This often happens if you work for a family member or if you work through an agency like Goodwill.
If you are paid for a 40 hour week but you only work 25 hours, you have a 15 hour subsidy. Another possibility is if the value of your work is $8.00 an hour, but you are paid $10.00 an hour (a $2.00 an hour subsidy).
If you subtract the subsidy, and your gross income is below the SGA amount, you might still be able to keep your Social Security benefits.
How Social Security reviews cases: the 5 step sequential evaluation process
I have written about how Social Security defines disability, work, and a substantial gainful activity.
But, how does Social Security really evaluate a case?
Social Security reviews cases using the five-step sequential evaluation process to decide is a person is disabled. Here are the 5 questions that make up the sequential evaluation process:
Does your impairment keep you from being able to perform a substantial gainful activity (SGA), generally full-time, competitive, work?
Is your impairment severe? AND, is your impairment expected to remain severe for at least 12 months?
Does your impairment “meet or equal” one of Social Security’s “Listing of Impairments?” A listing of medical conditions, acceptable medical evidence, and the severity necessary for an impairment to be considered disabling. There are separate listings for adults and for children.
Does your impairment prevents you from being able to perform any job you performed over the last 15 years which was also a substantial gainful activity?
Does your impairment prevent you from being able to perform any other type of work which exists in substantial numbers of the national economy?
Let’s take these one at a time:
Can I work and still receive Social Security disability or SSI benefits?
Updated 01/04/12.
Can a person work and still receive Social Security disability benefits or Supplemental Security Income (SSI) benefits?
The answer is a qualified “yes.”
Social Security wants people to try to go back to work. But, the regulations surrounding keeping your benefits while you try to go back to work make it tricky.
Are you engaged in a Substantial Gainful Activity?
Generally speaking, the test of disability is whether you can perform a substantial gainful activity (SGA)? That is, are your monthly gross earnings (income before taxes and deduction) equal to, or greater than the Substantial Gainful Activity amounts set by Social Security.
In 2012, if you are making at least $1,010 per month, before taxes, your work is a substantial gainful activity. To see the current SGA amount, or SGA amount for other years, click here.
So, if I my gross income is the SGA amount, or more, I have a problem,
But, if my monthly gross income is less than SGA, Social Security will leave me alone.
That is generally correct and it is a good rule of thumb.
However, and this is a big however, this is not the end of the analysis. There are exceptions to allow your benefits to continue if you are earning more than SGA and exceptions that might stop your benefits even if you are earning less than SGA.
If you are receiving Supplemental Security Income, you can earn more than the SGA amount and still receive your SSI benefits. But, that is an article in itself.
What if I am earning more than the Substantial Gainful Activity amount?
A number of people responded to my prior post about “substantial gainful activity” amounts. To briefly review: the general rule is that you cannot earn more than the substantial gainful activity amounts to be found disabled.
What do I do if I am earning more than the substantial gainful activity amount? Does than mean I cannot get Social Security disability benefits?!?
Not necessarily. Earnings above SGA amounts are an important factor. But, there are exceptions (including sheltered work, subsidies, unsuccessful work attempts, impairment related work expenses, and trial work periods) that may allow …
