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FAQs

How does Subsidy & Special Conditions apply to Benefits Planning Assistance and Outreach (BPAO) activities?

Subsidy is a tricky work incentive to explain to employee/beneficiary and employers. It is important for Benefits Specialist to:

It is important that you help the individual to realize that the SSA is not evaluating their work performance. Instead, the SSA is assessing if the disability has an impact on work production, and whether or not they could be as productive without supports on the job. It is a subtle difference, but an important one. Be careful to explain that the individual does not lose any money by helping the SSA establish that a subsidy exists. Some people are confused by the phrase "the SSA takes", or "the SSA deducts", and think that they must pay the SSA for their subsidy. Explain that this is all part of the SSA's decision about whether or not they could make as much without help.

When explaining Subsidy to an employer, it is important to let the employer know that the SSA wants to compare the employee's work to someone with out a known disability to determine if she/he could make as much elsewhere without the help that employer provides. Even though workers with disabilities may require extra help, many employers appreciate the employee, and are impressed with what they do. The employer may be reluctant to describe the work as less than that of other employees for fear of offending, or losing, the worker. Treat this with finesse, to gain an accurate picture of the consumer's Subsidy.

Explaining Subsidy:
Can a Subsidy ever be established retroactively?

Yes, in fact, they usually are. All of the SSDI work incentives involve making a decision about what has already happened. In some cases, a subsidy pattern can established based on past work for the same job, and the SSA is willing to project that the same subsidy will exist in the future. In most cases, however, the SSA is looking back and making a determination about what has already happened. It may even be possible for the SSA to overturn a benefits Cessation, once they realize that a subsidy should have been considered. Establishing a subsidy could thus eliminate an erroneous overpayment.
Can a self-employed individual have a subsidy?

SSA uses the term "Un-incurred Business Expense" for workers that are self-employed and
receiving support that someone else provides at no cost. Employment subsidies exist when a
self-employed person receives:

  • Unpaid help with the worker's business provided by a family member, relative or friend;
  • Un-incurred business expense (Vocational rehabilitation purchases equipment for the business); and
  • Soil Bank Payments (farmers/ranchers).
SSA deducts the cost of these expenses when determining SGA for workers that areself-employed.
How can consumers document Subsidy, special conditionsor unicurred business expenses for SSA?

The subsidy/special condition should be documented in letter format and include the following
information:

  • the individual's job,
  • start date,
  • hourly wage,
  • job schedule,
  • duties, and
  • declaration that a subsidy exists.
A description of the subsidy or special condition should be provided as well as how the dollar
amount/value of the subsidy was determined with supporting evidence.
How is the dollar amount of a subsidy determined when a worker is receiving job coach services?
The dollar amount of the subsidy is determined by the total number of job coaching hours permonth multiplied by the worker's hourly wage. This figure is then subtracted from the monthlygross earnings to determine the countable earnings for the month.

Resources:

VCU Briefing Papers:

Subsidy and Special Conditions - Subsidy-PDF | Subsidy-Word | Subsidy-Text

POMS Resources:

FAQ Disclaimer: The VCU-BARC FAQ Pages are general information provided as a public service. The contents do not necessarily represent the policy, interpretations or opinion of the Social Security Administration (SSA). The information contained here is intended to inform readers of issues that may affect Social Security and/or other public assistance benefits. Because individual circumstances differ, the reader should not rely on any information here as being specifically applicable to an individual's situation.