Frequently asked Questions About SSI and
Work Incentives for NJ Residents in 2004.
1- Q: If I work with someone who wants to get a job but
the person isn't quite sure whether he/she gets SSI or SSDI
--how can I find out?
A: If the person receives SSI (Supplemental
Security Income), she/he will get the check on the first
of the month -- the amount should be about $595.25. To find
out for sure, ask the person to go to their local Social
Security (SSA) office and get a benefits statement or a
copy of his or her "award letter."
2- Q: What happens when a SSI beneficiary begins to work?
A: SSA will gradually reduce the person's
benefits check as his or her pay increases. It is important
for an individual to report his or her income to SSA monthly.
The person should copy his or her pay stub and give the
original to SSA.
3- Q: How much is someone's SSI check reduced when they
work?
A: When a person works, Social Security
will disregard or exclude the first $65 of earnings in any
given month (it's called the EARNED INCOME EXCLUSION). If
the individual has no other income besides earnings and
SSI, Social Security will also exclude $20 (the GENERAL
EXCLUSION) of the total monthly income. Basically, the first
$85 of gross earnings will not affect the SSI check.
Once the first $85 dollars is excluded from countable income,
Social Security will deduct $1 from the person's SSI check
for every $2 that is earned in gross pay. For example, if
someone earns $285 in one month then Social Security will
exclude the first $85. They will then use the remaining
$200 dollars when calculating the reduction in the SSI check.
Since they deduct $1 in SSI for every $2 in pay, they will
deduct $100 dollars from the individual's SSI check.
4- Q: What is the formula that SSA uses to calculate
the check?
A: A simple three- step formula:
Step 1
$ Monthly Gross Earnings
-- $85 (The General + Earned Income Exclusions)
_________________________
$ Adjusted Earnings
Step 2
$ Adjusted Earningst
÷ 2
_________________________
$Countable Income
Step 3
$ Total Monthly SSI Amount
- Countable Income
_________________________
$ Adjusted SSI Amount
5- Q: Is the person getting ahead by
working?
A: In general, yes. Using our previous
example, if Social Security deducts $100 from the SSI check,
the individual will be left with 495.25 in SSI. However,
the person will also have $285 in gross pay. After taxes,
she/he should have about $230 in net pay. If you add the
reduced SSI and the net pay, the person's income has increased
to about $725.00. That is approximately a 25% increase in
total monthly income. The person may also be eligible for
an Earned Income Tax Credit at tax time. Some individuals
may get more money back in a refund then they paid in taxes.
For more information: http://www.irs.gov/individuals/article/0,,id=96466,00.html
6- Q: While there is some financial incentive for people
to work, are there any other Work Incentives that would
make employment more attractive to the beneficiary that
I'm working with?
A: There are quite a few Work Incentives
that can support beneficiaries when they return to work.
Two of the primary ones are PLANS FOR ACHIEVING SELF -SUPPORT
and IMPAIRMENT RELATED WORK EXPENSES.
A PLAN FOR ACHIEVING SELF -SUPPORT or PASS will allow the
individual to save income that is needed to achieve a vocational
goal. A person can designate a certain amount of income
to be saved monthly. This amount will be excluded from the
person's countable income when Social Security reduces the
SSI and therefore will safeguard some of benefit. For more
information.
Refer to - http://www.ssa.gov/work/ResourcesToolkit/pass.html
The use of IMPAIRMENT RELATED WORK EXPENSES
(called IRWE) may allow the person to deduct income that
is spent on items that are needed by a worker with a disability
in order to maintain employment. SSA will disregard 50%
of the incurred expense when calculating the SSI adjustment.
For more information, go to: - http://www.ssa.gov/work/ResourcesToolkit/workincentiveschart.html#IRWE
7- Q: When will the earnings terminate
the SSI check completely?
A: Social Security calls the figure the
BREAKEVEN POINT. As the individual's earnings increase,
SSA will continue to deduct $1 from the SSI check for every
$2 earned. When earnings exceed $1,275.50 a month, she/he
will no longer be eligible for a check. As long as the individual
receives $1 a month in SSI, employment will not affect Medicaid
coverage.
8- Q: How do earnings affect Medical
Assistance?
A: As long as the person earns less than
the BREAKEVEN point, employment will not affect health care.
If he/she earns over that, there is a Work Incentive, 619b,
that will allow the individual to earn more than the Breakeven
point and still receive Medical Assistance if the person
is eligible.
9- Q: What makes one eligible for 1619b
A. If a person needs Medical Assistance
to work, has no other available health coverage and remains
eligible for SSI for reasons other than earnings (for example,
one can't have more than $2000 in resources) she/he can
receive Medical Assistance until earnings reach the state
THRESHOLD AMOUNT. A person is eligible for Medicaid until
he or she reaches the current Threshold amount of $ 27,021
a year. In some situations, the amount can be raised if
the individual has excessive healthcare costs.
10- Q: What if the job doesn't work out?
A: If she/he is unable to work anytime
during the first year after losing SSI and 1619b Medicaid
coverage, the individual can be reinstated. There is also
an additional five-year reinstatement period. If an individual
can no longer work, she/he can receive benefits for at least
six months while SSA reviews the claim; if the person lost
work because of disability, the benefits will be reinstated.
11- Q: Suppose the person finds a job that pays more
than the Threshold Amount but it doesn't provide health
benefits, what can he/she do about healthcare?
A: New Jersey has a Medicaid "buy-in"
program called NJ WORKABILITY Medicaid. A worker with a
disabilitycan will pay a maximum monthly premium of $25
and get Medicaid coverage with earnings of approximately
$47,340 a year or less. For more information call (888)
285-3036. Make sure to ask for "NJ Workability Medicaid."
12- Q: What about other government benefits like housing
subsidies, food stamps etc?
A: It is probably a good idea to refer
individuals with multiple government benefits to a benefits
counselor. There are two organizations in the NJ that provide
this service. They can help individuals receiving SSI understand
and strategize about issues involving Social Security and
other government subsidies. They are:
- The United Cerebral Palsy Association of
NJ (877) NJWINS2,
njwins@cpofnj.org
The Epilepsy Foundation of New Jersey @ (866)
946-7465
njwins@efnj.com
To see what office covers your area visit:
http://www.efnj.com/programs/njwins.shtml
13- Q: Any other tips?
It is strongly recommended that you encourage
any program participants that you are working with to become
good "record keepers." In order to avoid being
overpaid or underpaid by SSA, a beneficiary should report
his or her income by the 10th of the month subsequent to
the earnings. The person should either get some kind of
receipt when submitting pay stubs or mail in the stubs using
registered mail in order to have a record that stubs have
been submitted. Beneficiaries should always make two copies
for themselves; one for their own records and additional
one in case earnings need to be reported to some other government
agency.
14- Q: How do I find out more?
To find out more about Work Incentives
go to Social Security's Web site at www.ssa.gov/work. Some
particularly helpful URLs on the Social Security site are:
http://www.ssa.gov/work/ServiceProviders/providers.html
http://www.ssa.gov/work/Beneficiaries/activity.html#NewJersey
It may also be helpful to have copies of these SSA publications
handy for reference:
- Work Incentives for People with Disabilities (Redbook),
Pub- 64-030
- SSI - A Guide for Groups and Organizations, Pub- 05-11015
- A Desktop Guide to Social Security and SSI Work Incentives,
Pub, 05-11002
These brochures may also help you understand SSA terminology
so you will be able to effectively advocate for beneficiaries
should you assist them in their dealings with SSA.
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