Jorgensen Law

What is Substantial Gainful Activity?

Substantial Gainful Activity

There are many conditions used to ascertain if a disabled individual is eligible for Social Security Disability benefits. Among these is whether or not the person can perform “substantial gainful activity.” You will not be qualified for disability benefits should the Social Security Administration (SSA) determine your fit for substantial gainful activity.

Hence, to meet the requirements for disability, you must:

  1. Pass the SSA’s physical tests for the severity of your disability
  2. Be unable to engage in any other kind of “substantial gainful” work.

What Is Substantial Gainful Activity?

According to Social Security Administration, Substantial Gainful Activity is a form of work which requires productive and significant duties. Besides, the body also defines it as a kind of work that pays above the current monthly income limit set by it. Part-time work, jobs with lesser responsibility or those that pay below your regular job are all considered as Substantial Gainful Activities.

Unpaid jobs are not considered “gainful” employment. However, in the event that the unpaid job is substantial, the Social Security Administration may find out that you are capable of working; hence, unqualified for Social Security Disability benefits.

Earnings Limit For 2018

The earnings limit for 2018 is valued at $1,180. Blind persons are considered at $1,970. The measure of Substantial Gainful Activity varies every year. It normally increases with respect to the cost of living. The Social Security Disability Insurance (SSDI) usually made Social Security Disability payments and considers when wages are earned rather than the total annual amount.

An instance of this fact is given below:

Assuming an organization pays you for 10 month’s work over a period of 12 months; Social Security will divide your annual earnings by 10, and arrive at what you actually earn per month.

According to SSA, your income with respect to the earnings is what you earn from the work you do. This includes wages from a company, income from self-employment and other in-kind payments. The SSA includes only net earnings, hence, do not consider expense reimbursement.

POMS RS 02505.240 is a document which discusses compensation in details. Are you in doubt? Endeavor to consult a Social Security office in your locality. This will assist you to make a reasonable determination whenever you reach that stage of the application process.

How Substantial Gainful Activity is calculated

In determining your eligibility for disability benefits, Social Security considers your gross pay. You will be disallowed from excluding state and tax withholdings, FICA taxes, insurance premiums, union dues, pension payments or other standard payroll deductions. This is because they are paid with the income you have earned.

The figure that remains after the entire allowable expenses are deducted from your earnings is referred to as “countable income.” This income determines if you participate in substantial gainful employment or not. It also determines your eligibility to be granted Social Security Disability benefits.

Contact a Social Security Attorney Right Away

It is extremely tough process applying for Social Security benefits. This is why it is advisable you consult a Social Security Attorney who will assist you with all you need to succeed.