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How does the SSA make subsidy determinations?
When conducting a work Continuing Disability Review, the Work Activity Report (form SSA 821), asks questions that should help the Social Security Claims Representative identify when a subsidy exists. The SSA will look for subsidy if the consumer reports getting extra help, having lower productivity, missing more work, or being hired under a special program or by a friend or relative. They might also ask about a subsidy if the consumer has:

To make the decision if a subsidy exists, the SSA gathers information from the beneficiary, and from his/her employer. Does she/he have a slower production rate than industry standard? Does she/he need a job coach to perform his/her duties? Was she/he hired by a friend or relative to do this job? Does she/he have more absences, shorter days, or fewer duties than co-workers? Is she/he working under a special program? What is the extra assistance, lower productivity, or special circumstance worth?

How does the SSA know how much to deduct?
In developing subsidies, employers provide documentation (SSA Work Activity Questionnaire) regarding the actual value of the workers' services. Employer subsidies may be either specific or non-specific. Specific subsidies are those in which employers are able to designate a specific dollar amount of subsidy after calculating the reasonable value of the worker's services. Specific subsidies should include an adequate explanation as to how a specific subsidy was calculated.

If an employer cannot provide a satisfactory explanation for identifying a specific amount of the subsidy, the amount of the subsidy can be determined through further development by the employer. For, non-specific subsidies, the employer determines the value of the subsidy by comparing the work of individuals in terms of time, skills, and job responsibilities at the workplace with that of coworkers without known disabilities performing similar work. The proportional value of the work must then be estimated according to the prevailing wage for such work.

VCU-BARC Briefing Paper Subsidy and Special Conditions:

Subsidy-PDF | Subsidy-Word | Subsidy-Text

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.