Subsidy & Special Conditions

What is Subsidy & Special Conditions for Working SSDI Beneficiaries?

Social Security (SSA) provides a number of work incentives in the Ticket to Work program for beneficiaries to test their ability to work. Social Security personnel use four important tools to determine whether or not a beneficiary’s work represents Substantial Gainful Activity (SGA); Unsuccessful Work Attempt (UWA); Subsidy/Special Conditions; Impairment Related Work Expenses (IRWE); and Averaging. In this blog we will explore part one of four of these SGA tools, Subsidies & Special Conditions, and when they can be applied to reduce (SGA) “countable income”.

For SSDI beneficiaries in the Ticket to Work program, the very first work incentive available is the 9-month Trial Work period (TWP), where beneficiaries can have work earnings as high as they want and continue receiving their SSDI cash. It is after the completion of the 9-month TWP when Social Security will be evaluating SGA level of earned income using a twostep process:

1. Determine gross wages earned each month.

• Wages are counted when earned in the Title II program. Social Security may presume wages were earned in the month they were paid, if evidence of when earned is not readily available.

2. Determine countable gross wages.

• Subtract pay that doesn’t represent work activity: sick and vacation pay.
• Subtract applicable work incentives: Subsidy/Special Conditions and/or Impairment Related Work Expenses (IRWEs).

Subsidy/Special Conditions

• Subsidy is defined as support a beneficiary receives on the job that could result in that beneficiary receiving more pay than the actual value of the work performed.
• Subsidies and special conditions may be provided by the employer, other organization/agency or both.

Subsidy/Special Conditions in Wage Employment

• When making an SGA determination, Social Security considers ONLY the earnings that are attributed to the actual work performed by the beneficiary.
• Social Security will deduct the value of any extra help, special accommodations, or other special conditions provided to the beneficiary that are not provided to non-disabled co-workers.
• The resulting “countable earned income” is compared to the SGA guideline

Indications of Subsidy/Special Conditions

• Employment is sheltered – a setting in which people with disabilities receive services and training to develop work-related skills and behaviors.
• Childhood disability or mental impairment is involved.
• “Marked discrepancy” between amount of pay and value of services provided by employee. This happens when the employee takes more time to complete a task or require extra supervision than other employees without a disability.
• Someone alleges that the employee does not “fully earn” their pay (receives unusual help from others, like from a job coach).
  • Job coaching special conditions:
    • May be provided by employer or organization other than employer.
    • Typical example is when a job coach performs part of the job duties or provides close/continuous supervision.
    • Must know the hours worked by the individual, the hourly pay, and the # of hours of job coaching each month; employer may provide monthly breakdown of earnings.
• Nature/severity of impairment indicates unusual help.
• Beneficiary works for a friend or relative.
• Government-sponsored job training and employment programs or in the military.

Work Activity Reports and Subsidy

The Work Activity Report (SSA 820/821) includes questions that probe for possible subsidy or special conditions:

• Extra help, extra supervision, extra breaks.
• Different job duties, different hours than other workers.
• Special equipment or services provided at work.
• Providing accurate & complete information on the Work Activity Report is the first step in making Social Security aware of potential subsidy/special conditions.

Employer Subsidy

• An employer may subsidize the earnings of a beneficiary by paying more in wages than the reasonable value of the actual services performed.
• When this occurs, the excess will be regarded as a subsidy rather than earnings.
• Employer subsidy is either specific or non-specific.
  • Specific subsidy – employer can calculate the value of the subsidy or special support provided, like the cost of assisted technology or reader services needed for beneficiary in order to work.
  • Non-specific subsidy – the employer cannot calculate the amount of the subsidy.

Non-Specific Employer Subsidy

In most cases, Social Security is able to determine the amount of a subsidy by:

1. Comparing the time, energy, skills, and responsibility involved in the individual’s services with the same elements involved in the performance of the same or similar work by unimpaired individuals in the community; and
2. Estimating the proportionate value of the individual’s services according to the prevailing pay scale for such work. Social Security sends employers an Employee Work Activity Questionnaire, SSA-3033-BK to gather the information needed to determine the value of non-specific subsidies.

Some Examples of the SSA-3033-BK Questions

1. Does the employee complete all the usual duties required for his/her position?
2. Is the employee able to complete all of the job duties without special assistance?
3. Does the employee regularly report for work as scheduled?
4. On average, does the employee complete his/her work in the same amount of time as employees in similar positions?
5. Please indicate the type(s) of special assistance, if any, the employee receives on the job that is not regularly given to other employees.
6. Based on the information above, approximately how would you rate the productivity of the employee compared to other employees in similar positions and similar pay rates?
7. Are you paying the employee more per hour than you would another employee in a similar position? If yes, what would you pay another employee in a similar position per hour?

Employer Subsidy Determinations

• If the 3033 is not returned by the employer, or doesn’t provide enough information, Social Security will contact the employer directly to ask a series of questions about the beneficiary’s work.
• If unable to get any information/specific amount from employer, Social Security personnel may determine approximate subsidy based on information from beneficiary and/or third party.

Subsidy Considerations

• Subsidy may apply during any SGA decision (initial application and any post eligibility SGA decisions).
• Can be applied alone or in combination with IRWE to reduce countable earned income.
• Applies after cessation during the Extended Period of Eligibility (EPE) when Social Security is determining if a benefit payment is due.
• Only Social Security can determine the value of subsidy/special conditions. Subsidy determinations can be complex, but it is an important tool Social Security uses to determine the VALUE of a beneficiary’s work when making SGA decisions.

Social Security recognizes that sometimes a person’s disability results in the need for extra assistance, a reduced production rate, frequent breaks, or fewer job duties than co-workers in a similar job. This means that in some cases, a beneficiary may receive more pay than the reasonable value of their work when compared to other employees performing the same tasks.

Mission Possible has certified Community Work Incentives Counselors on staff to assist with filling out and answering questions on a Work Activity Report (SSA 820/821) or Work Activity Questionnaire (SSA 3033). Call us with questions or for more information 888-359-2366.

Resource links used for this bog: https://vcu-ntdc.org/resources/ntcmanual.cfm  Module 3, Unit 3, page 52-56 or you can find detailed information about Subsidy in Social Security’s POMS (https://secure.ssa.gov/apps10/poms.nsf/lnx/0410505010).

– Tina