How SSA Treats Employee Bonuses Provided by Wal-Mart

Wal-Mart Corporation pays bonuses to employees on a regular basis that are based upon the overall financial performance of the store. All employees of the store share in the bonuses and FICA is deducted from these payments. The bonus payments are made at regular intervals (quarterly, annually) and reflect performance of the store over a period of months. These bonuses are not based upon individual productivity or work performance, but upon the combined performance of all employees who work in a particular store. Since Wal-Mart hires a large number of persons with disabilities who are SSA disability beneficiaries, a great many CWICs across the country have encountered questions about how these bonuses should be treated by SSA.

As a national company, the bonus program implemented by Wal-Mart is the same regardless of where the stores are located. Our problem is that various FOs, Area Offices and Regional Offices are treating these bonuses in different ways. Our questions are as follows:

QUESTION: Is this income earned income or unearned income for the SSI program? Assuming it does count as some form of income, we assume the income is counted in the month it is received as SSI does with all other forms of income. We would like verification that this is correct.

ANSWER: Yes, this interpretation is correct. Bonuses paid to an employee by an employer are wages (earned income) per SI 00820.100 and RS 01401.150.

We count income (including bonuses) at the earliest of the following points:
when it is received,
when it is credited to an individual's account, or
when it is set aside for his or her use.

We determine income monthly and count it in the month that it is received (SI 00810.030).


QUESTION: For title II disability benefits, does this income count when SSA makes TWP and SGA determinations? If it does count, is it the case that the bonus money should be applied retroactively for the months over which the bonus is being paid?

ANSWER: For the question regarding Wal-Mart, our policy on bonuses for T2 is contained in DI 10505.010D.

“When evaluating bonus/incentive payments, generally consider that those payments represent the person's own productivity. The adjudicator is not required to verify whether the bonus is related to the person's own productivity unless the beneficiary can provide evidence indicating that it is not. Determine if the bonus/incentive payment represents a specific period of time, and if it does, distribute the earnings over the period of time it was earned. If the amount does not represent a specific period of work activity, or a specific time period is not determinable, distribute the payment(s) monthly over the time period the person had worked for the employer up to but not exceeding a year.”

Generally, we will consider bonuses as countable earnings as described above. However, if a beneficiary provides evidence that the payment is not related to his or her own productivity (such as a shareholder bonus) then that payment is excluded from countable earnings for TWP and SGA purposes. We will take action to clarify this policy in the above POMS.


Any questions may be directed to: rsi5@srt.com

Blind Work Expense

A Blind Work Expense (BWE) represent any earned income of a blind person which is used to meet any expenses reasonably attributable to earning the income. We use these for individuals with visual impairments who receive SSI. This can increase the amount of SSI an individual receives.

Although similar in many regards to Impairment Related Work Expenses (IRWE), BWE's cover far more expenses and are not limited to the expense being directly related to a disability.

Examples of what expenses can qualify as a BWE and/or IRWE can be found in this surprisingly user-friendly chart produced by SSA.

If you or someone you know may have a BWE expense that may be deductible, below is a very nice request form that can be filled out and submitted to SSA.

Any questions may be directed to: rsi5@srt.com

Blind Work Expense Request

U.S. Senate Introduces Bill to Increase Participation in Clinical Trials for Rare Diseases

September 16, 2009
Last night, the Senate followed the House’s lead in introducing legislation to allow patients with rare diseases to participate in clinical studies without losing their eligibility for government healthcare benefits.

“The CF Foundation applauds the Senate co-sponsors for introducing this vital bill to allow more people with rare diseases — including cystic fibrosis — to participate in clinical trials," said Robert J. Beall, Ph.D., president and CEO of the Cystic Fibrosis Foundation. “If successful, this legislation will help ensure swift advancement of life-lengthening and potentially lifesaving drugs from the research phase to the people who need them.”

Currently, Supplemental Security Income (SSI) rules require that compensation provided for participation in a clinical trial be counted as income when determining benefits. Because Medicaid benefits are tied to SSI eligibility, patients who take part in clinical trials may be disqualified from receiving the government healthcare coverage. This penalty prevents many people with rare diseases from participating in clinical studies.

Researchers developing drugs to treat rare diseases like cystic fibrosis struggle to recruit participants for clinical trials because of limited patient populations. More than 30 promising CF drugs are in development, and about 30,000 people in the United States have the disease.

The bill is co-sponsored by Sens. James Inhofe (R-OK), Richard Durbin (D-IL), Richard Shelby (R-AL), Ron Wyden (D-OR), and Chris Dodd (D-CT).

Source: Cystic Fibrosis Foundation, www.cff.org.

Any questions may be directed to: rsi5@srt.com

Future Amendments to ADA

On September 16, 2009, the Equal Employment Opportunity Commission (EEOC) voted to approve a Notice of Proposed Rulemaking (NPRM) [HTML] | [PDF] to conform its ADA regulations to the Amendments Act of 2008. The NPRM was published in the Federal Register on September 23, 2009. The Commission has also issued a question and answer guide on the NPRM. Below is a summary of the changes made by the Amendments Act, which became effective on January 1, 2009. You may continue to check this space for periodic updates.

http://www.eeoc.gov/ada/amendments_notice.html

Any questions may be directed to: rsi5@srt.com

WIPA and PABSS Pass!!!

Commissioner Astrue -

“I want to thank Congress and President Obama for the recent passage of the WIPA and PABSS Reauthorization Act of 2009. The bill extends funding authorization for the Work Incentives Planning and Assistance (WIPA) and the Protection and Advocacy for Beneficiaries of Social Security (PABSS) programs through fiscal year 2010.

There are currently 103 WIPA programs across the U.S. working with Social Security disability beneficiaries on job placement, benefits planning, and career development. With this vital support, beneficiaries are better equipped to make informed choices about work. The PABSS program provides much-needed advocacy services that help beneficiaries navigate through an often-confusing web of Employment Networks, Social Security rules, legal issues, and employment issues. I anticipate a continuing need and increased demand for both WIPA and PABSS services, and the extension of funding allows the opportunity to further evaluate these important programs.”

For more information about these programs and the Ticket to Work program, please see www.socialsecurity.gov/work.

Any questions may be directed to: rsi5@srt.com

Changes to Medicare Part D Extra Help May Expand Eligibility

The Social Security Administration is asking partners to help spread the word about changes in the law beginning January 1, 2010, that could make more people eligible for “extra help” in paying for premiums and out-of-pocket expenses under Medicare Part D prescription drug coverage. The two most significant changes are that life insurance policies will no longer count as a resource, and income assistance received from someone else for household expenses (food, mortgage, rent, heating fuel or gas, electricity, water, and property taxes) will no longer count. A webinar on the changes will be held September 15, 2009, at 2 pm Eastern. RSVP for the webinar at http://www.ssa.gov/survey/mipparsvpsurvey.htm

For more information about Social Security work incentives, refer to the 2009 Red Book found at http://www.socialsecurity.gov/redbook/. The Red Book is a general reference tool and self-help guide designed to provide a working knowledge of these provisions. If you have any questions, please call the Social Security Administration toll-free at 1-800-772-1213 or contact your local SSA office. The Social Security Administration has a very comprehensive and user-friendly web site with extensive information, publications, and forms available. In addition to the main website, specific sections are dedicated to disability issues.

You may find earlier versions of work incentive emails on the www.nebraskatickettowork.org website.

Any questions may be directed to: rsi5@srt.com

SSI: Reporting Your Wages Just Got Easier

Telephone Wage Report

Beneficiaries, deemors and representative payees reporting a change in wages can report their monthly wages to SSA by telephone. These instructions explain what beneficiaries, deemors, and representative payees need to do in order to use the SSA phone system to report monthly wages.

Beneficiaries, deemors and representative payees who would rather not report wages by telephone can use traditional reporting methods such as mailing or bringing paystubs into their local Social Security office. Monthly telephone reporters who experience technical difficulties should contact their local field office for assistance.

When you should call to report wages

You should call to report wages during the first six (6) days of the month. You can choose which of the six days to call. But, you will not be able to report wages using the special 800 number after the sixth day of the month.

Things you need to have before you to report wages by telephone

• The Social Security number of the person who is reporting wages (the caller)

• The Social Security number of the wage earner

• The TOTAL amount of gross wages for the wage earner. Gross wages are the amount of pay before taxes and other deductions.

• The Social Security number of the person who is eligible to receive SSI benefits

• The caller’s name as it appears on their Social Security card

Who is the Wage Earner?

A wage earner is the person who is working and receiving wages or payment for working. You are the wage earner if you are working and you are reporting your own wages. If you are calling to report someone else’s wages, then the wage earner is the person whose wages you are reporting wages.

Call 1-866-772-0953 and make your report.

Any questions may be directed to: rsi5@srt.com