A common concern among many people receiving SSI is what will happen to their benefits if they get stable employment. The concern is understandable and this article tackles what you can expect when you find yourself in this situation.
How are your benefits vs. income calculated?
SSI benefits do not disappear the moment you start working. The Social Security Administration (SSA) uses a formula to reduce your payment gradually based on your earnings.
When you work, the SSA does not count the first $65 you earn each month. After that, your benefit decreases by only $1 for every $2 you earn above that threshold.
For example, if you earn $500 in gross wages and have no other income, the agency first subtracts the $20 general exclusion and the $65 earned income exclusion, leaving $415. They then divide that remainder in half to determine that $207.50 is your countable income.
For residents of New Jersey, the state provides an additional State Supplement payment that is administered directly by the agency. You will receive one combined check each month that includes both the federal benefit and the New Jersey state supplement.
What report must you make to the SSA?
If you work while receiving SSI, you must submit your wage data to the Social Security Administration. This ensures your monthly payments remain accurate.
The SSA encourages you to file your earnings for the prior month between the 1st and the 6th of the new month. Doing so during this window ensures your next SSI check is adjusted correctly. You need to notify the agency of all changes, including income and employment status, no later than the 10th day of the month following the change.
You can report your wages efficiently using my Social Security online account, the SSI Mobile Wage Reporting app or the automated telephone system. If you cannot use these automated methods, you may mail or fax your pay stubs to your local Social Security office.
What if you do not inform the SSA of the changes?
Failing to submit your earnings on time can lead to serious consequences. The SSA may overpay you, meaning you could owe money back to the federal government.
If you do not submit your changes within the required timeframe, the agency deducts $25 from your payment. This penalty increases to $50 for a second offense and becomes $100 for every subsequent failure to report.
In more serious cases, knowingly withholding information can trigger a sanction. A first violation of this nature results in a 6 month suspension of payments. If the violation is repeated, you may face a suspension of 12 months for a second offense and up to 24 months for a third offense.
