Overview of Social Security Disability Programs and Work Incentives - slide 20
Subsidy Example:
STEP ONE Hours of job coach intervention (on-site) per month or number of hours of additional supervision given
x $____ Multiply by hourly wage of worker
= $ Equals monthly subsidy
STEP TWO $ Monthly Gross Earnings
- $____ Minus Monthly Subsidy
= $ Equals Monthly Gross Wages Counted Toward SGA
Last but not least, let’s
take a look at Subsidy. This is the last SSDI work incentive. A subsidy is support
a person receives on the job, which could result in more pay than the actual
value of the services the person performs. Only earnings that represent the
real value of the work performed are used to determine SGA. SSA makes a determination
of the value of the work, after subsides are subtracted.
The dollar amount of these is subtracted from gross monthly earnings potentially
reducing gross earnings below the SGA level. Subsidies are considered in ongoing
SGA determinations.
Subsidies exist when employers pay workers more in wages than the reasonable value of the actual services performed. To qualify, individuals must have evidence of receiving subsidies such as extra support, supervision, or documentation of lower productivity compared to unimpaired workers performing the same or similar work.
In developing subsidies,
employers are requested by the SSA to submit statements documenting the actual
value of workers’ services. Subsidies may be either specific or nonspecific.
In specific subsidies, employers designate a specific dollar amount after calculating
the reasonable value of workers’ services. In nonspecific subsidies, employers
are unable to designate a specific dollar amount as the subsidy. The amount
of subsidies is determined by comparing the work of individuals in terms of
time, skills, and responsibilities with that of nondisabled individuals in similar
work. The proportional value of the work must then be estimated according to
the prevailing pay scale of this work. SSA makes this determination.
Special condition subsidies are items provided by someone other than an employer
(e.g. a VR agency, job coach, etc.).
Let’s look at an example of a subsidy. Brian has finished is TWP and is being reviewed for SGA. He receives 10 hours a month of supported employment services/support and earns $9.00 per hour ($1000 per month) in his current job. To determine the amount of his subsidy you take the number of on site job coaching hours per month and multiply it by the wage of the worker.
This would be $90 for Brian. In order to see the effect on his SSDI, you take the amount of the subsidy ($90) and subtract it from the gross monthly earnings. So you would deduct 90 from 1,000. This would leave Brian with a total monthly gross income of $910.
This would bring him below SGA in 2010 and allow him to receive his SSDI check for that month. It is important to remember that if the number of hours of on site assistance Brian receives changes, then the subsidy changes and you would need to notify SSA of this.