Ross-Employment and Social Security Benefits by yantingting


									           Michigan Coalition
• Jack Anderson
      United Cerebral Palsy of Michigan
• Paul Landry
      United Cerebral Palsy of
      Metropolitan Detroit
• Brenda Etheridge
      Goodwill Industries of Detroit
• Lynn Ross
      United Cerebral Palsy of Michigan
      & The Arc Michigan

What is Work Incentive Planning
      Assistance (WIPA)?
  This is a nation wide project funded by SSA
  It is part of the Ticket to Work Legislation
  The purpose is to provide Benefits Counseling to
  SSI and SSDI (Title II) beneficiaries (including
  students over the age of 14) so they can make
  informed choices about going to work
       What Do We Do?

  We sit down with the student and
  his/her parents to explain all the
  work incentives available
  We help the student to use work
  incentives and to report income
  to Social Security
There is no penalty if the student
  decides not to work
Protection and
PABSS Program
The PABSS (Protection and
Advocacy for Beneficiaries of
Social Security) is also an
important part of the ticket to
work program. This agency
provides advocacy and legal
assistance with return to work
issues. To contact MPAS:
Social Security (PABSS) Program

   1-800-288-5923 Lansing
The Fear:
 I’m a Social Security Disability
  beneficiary or an SSI recipient
   and if I go to work I will lose
  my cash and medical benefits.

 What if I can’t keep working?
   How will I pay my bills?
The Truth:
There are work incentives available to help
• earn money and keep some or all of their
   benefits or
• earn more money and move off benefits
   to self sufficiency

There is even a work incentive to help an
   individual get back on benefits easily if
   they need to.
             SSDI or SSI?
         What’s the difference?
SSDI (Title II)               SSI (Title XVI)
(Social Security              (Supplemental Security
  Disability Insurance)         Income)
• Insurance Program           • Needs based
  based on work history       • Resource limits $2,000
  (can also be based on         for single, $3,000 for a
  parents or spouses            couple
  work history)
                              • Comes with Medicaid
• No resource limits            automatically
• Comes with Medicare         • Federal Benefit Rate
  after 24 months of            $674/individual,
  SSDI entitlement              $1011/couple
   If SSDI benefit is less than the Federal Benefit Rate
  ($674 + $20 in 2011) an individual may be eligible to a
       portion of SSI in addition to the SSDI benefit
    Disabled Adult Child (DAC) or
  Childhood Disability Benefit (CDB)
          An individual:
          • Who is unmarried and
          • Who is age 18 or over and
          • Whose disability began before the
            age of 22

Can draw from a parent’s earnings record if:
•The parent is drawing Social Security Disability or
•The parent is drawing Social Security Retirement or
•The parent is deceased

        Medicare or Medicaid
SSDI – Medicare                    SSI - Medicaid
• Medical coverage                 • Automatic medical
• Starts 24 months after             coverage
  entitlement to SSDI              • Starts the same
• Part A covers                      month as eligibility
  Hospitalization                    for SSI
• Part B covers Medical            • Hospitalization,
  Providers                          Medical Providers,
• Medicare Part D began              Prescriptions
  January 2006, prescription       • Resource limits
  drug coverage                      $2,000 for single,
• No resource limits                 $3,000 for a couple

 Some SSDI Beneficiaries may be eligible for both Medicare
     and Medicaid. They will need to apply for Medicaid
    separately from SSDI. DHS determines eligibility for
                        Medicaid.                        10
SSDI/SSI Work Incentives

     What is a work incentive?

Special rules that help individuals enter
           or return to work

Security Income
(SSI or Title XVI)

Supplemental Security Income/ SSI
• Needs based program
• $674.00 = Federal Benefit Rate for 2011
• Basic formula when working:
  – Gross Wages - $85.00 / 2 =Countable Earned
    Income. Countable Earned Income -$674.00 = SSI
• You can earn up to $1433 a month before your
  SSI check decreases to $0
• You can earn up to $29,036 a year before your
  SSI case closes
• Report monthly on income received during the
  month (Unearned & Earned income)
Social Security divides income into two types:
1. Earned:
     Money received for employment
2. Unearned:
     Just about everything else including
Social Security uses two income exclusions:
1. GIE (General Income Exclusion):
     First $20 of unearned income
        (if no unearned income then the first
            $20 of earned income)
2. EIE (Earned Income Exclusion):
     First $65 of earned income                 14
Another example
    Joe receives $674 a month
   SSI. He wants to start working
    20 hours a week at $7.40 an
      hour. How does Social
   Security decide how much his
         SSI Check will be?

Let’s estimate his monthly earned income:
     20hr x $7.40 =$148/wk x 4.3wks
       SSI Earned Income
•Take gross total monthly earnings   636.40

•Subtract General Income Exclusion   -20.00

•Subtract Earned Income Exclusion    -65.00

•Divide the remainder in half        551.40 /2

•Countable Earned Income             275.70 *

•Base SSI Rate                       674.00

•Total Countable Income              -275.70 *
•SSI Check                           398.30
not working    INCOME working      $636.40 earnings
$674.00                            +398.30 SSI
                                   $1034.70 Total

          INCOME working after taxes
                $636.40 earnings
                  -95.46 estimated taxes (15%)
                +398.30 SSI
                $939.24 Total
  What if joe works enough
   to stop the SSI check?
The SSI case does not close just because
Joe earns enough to stop the SSI check.
•as long as the individual has an
    open SSI case
•even without an SSI check
•their automatic Medicaid will
       To Be Eligible for 1619b Status:
      “Medicaid beyond the SSI check”
An Individual:
•Must have been eligible for an SSI cash
     payment for at least 1 month
•Must still be disabled
•Must have had the SSI check stop due to work
•Can earn at least the “threshold amount”
($29,036/ year)
•Must need Medicaid for work
If earnings exceed the “threshold” or assets
exceed the asset limit, an individual can move
to the Freedom to Work Medicaid category 19
    Student Earned Income
       Exclusion (SEIE)

(Student Earned Income Exclusion)

 Up to $1640 per month

 A yearly cap of $6600

      Student Earned Income
         Exclusion (SEIE)

What is a student?

Under   age 22

Regularly   attending school

What is regularly attending

In college or university at least 8
      hours a week or
In grades 7-12 at least 12 hours
      a week or
In a training course to prepare
      for employment at least 12
      hours a week or
See Redbook page 36 for more
      info                             22
      How is an SEIE budgeted?

•Take gross monthly earnings   636.40
•Subtract SEIE                 -636.40
•Countable Earned Income           00
•2008 Federal Benefit Rate     674.00
•Total Countable Income           -00
•SSI Check                     674.00

    Comparison Scenario
       With and without SEIE
INCOME           INCOME working    $636.40 earnings
not working                       +398.30 SSI
                                   $1034.70 Total

         INCOME working using the SEIE
               $636.40 earnings
               +674.00 SSI
              $1310.40 Total

      What if Joe is in a Federal
       Work Study Program?
Wages will NOT be countable as income
 for SSI if:
    Work is under Title IV of the Federal
    Higher Education Act. Must present

Wages WILL be countable as income
 for SSI if:
     Work is under Michigan Work Study

Gifts to Students for Education
• Any gift a student receives for use in paying
  tuition or educational fees is excluded from
  his/her SSI income determination
• Also excluded are grants, scholarships and
• All of the above are excluded from the
  students countable resources for 9 months
  after they receive it.

 Some Work Incentives - SSI

IRWE (Impairment Related Work Expense)

EXR (Expedited Reinstatement)

PASS (Plan for Achieving Self-Support)

A CWIC can help you decide if the above
work incentives are helpful to you.

   Social Security
Disability Insurance
       Title II)

       SSDI Work Incentives
          3 time frames
 The TWP (Trial Work Period) is a nine-
  month, not necessarily consecutive,
  time frame. Twp amount $720
 The EPE (Extended Period of Eligibility)
  continues consecutively for at least 36-
  months. SGA amount $1000
The EXR (Expedited Reinstatement of
  Benefits) is a 5 year time frame that
  begins the month the case closes due to
  work activity. A beneficiary may be able
  to get benefits back if earnings have
  dropped due to the same disability.
               Let’s look at
     Substantial Gainful Activity (SGA)

(SGA is used at application and following
  the Trial Work Period)

 If you are earning more than $1000 a
  month or $1640 a month if blindness is
  your disability then
 You are considered to be earning at
  the SGA level
     However, SGA is not just about money!
IRWE: Impairment Related Work Expense

UWA: Unsuccessful Work Attempt

Averaging: In some situations, Social Security can
  average income over several months

Subsidy or Special Conditions

Remember - Social Security decides if it is SGA – but
  you can help present the needed verification for
  SSA to make that decision

A CWIC can help you decide if the above work
  incentives are helpful to you.                     31
        What happens to Medicare?

Continuance of Medicare:

If your SSDI case closes because of earned
   income, your Medicare will continue for at
   least 93 months following trial work

That’s 7 years 9 months !!!
    Freedom to Work Program
•Signed into Law July 2003
•Effective January 1, 2004
•Enables people with disabilities to work
     without Losing Medicaid
•Enables Increased Assets (up to $75,000,
     not counting home, car and retirement
•No CAP on Income
Freedom to Work Medicaid
SSI—How to move to FTW?
  If a working SSI beneficiary is:
  1) Eligible for Medicaid, other
      than a deductible case, after
      January 1, 2004, and
  2) Loses Medicaid due to their
      earned income or increased
  They will be able to move to
      the Freedom to Work
      Medicaid category.
     SSDI Freedom to Work
      Who Qualifies Now?
If an SSDI beneficiary is:
1. Eligible for Medicaid, other than a
    deductible case, after January 1, 2004,
2. Unearned countable income is less than
    Federal Poverty Level (FPL) ($908 a
    month in 2011 for a single person)
3. Begins working
They will be able to move to the Freedom
    to Work Medicaid category.
        Avoiding over payments
You need to notify Social Security about the
  following things as they happen. Remember
  that you should always provide notification of
  changes in writing!

•   Start or stop working
•   Increase or decrease your hours
•   Get married or divorced
•   Leave school or go back to school
•   Move
     Want more information?
        Please contact:
• UCP Michigan
    1-800-828-2714 or
    Lynn Ross: 1-800-211-1356 or
          Ross: 231-932-1660
• UCP of Metropolitan Detroit
    Paul Landry: 1-800-827-4843
       or 248-557-5070 , ext. 113
• Arc of Michigan
    Tony Wong: 1-800-828-2714
• Goodwill Industries of Detroit
       or 517-487-5426 x 127
• Goodwill Industries of Detroit
    Brenda Etheridge: 1-888-232-4140
    or 313-557-38718 1-888-232-4140
    Brenda Etheridge:

To thine own self be true
            William Shakespeare


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