SSI Disability And Previous Employer Back Wages

[Old Dog]

Hi, I am currently on permanent SSI/Disability Three years ago I was released by my employer for health reasons (2012) I filed for Disability in mid 2013 and was awarded SSI/Disability in mid 2014 I had filed civil action against the employer early 2013 Just recently through mediation it was resolved and they are issuing me a check (2015) for a years back wages. Will I have to repay SSI/Disability back my SSI benefits from this past year although I did not actually work for the employer since late 2012? What is my best options....if any? Thank You

 

[LdiJ]

Hi, I am currently on permanent SSI/Disability Three years ago I was released by my employer for health reasons (2012) I filed for Disability in mid 2013 and was awarded SSI/Disability in mid 2014 I had filed civil action against the employer early 2013 Just recently through mediation it was resolved and they are issuing me a check (2015) for a years back wages. Will I have to repay SSI/Disability back my SSI benefits from this past year although I did not actually work for the employer since late 2012? What is my best options....if any? Thank You

Are you receiving SSI, SSDI or a combination of the two?

The back wages will make you ineligible for SSI for a period of time until the money is used up. You will have to reapply afterwards. SSDI however is a different story. Do not forget that the settlement will be taxable income to you, and plan for that.

 

[justalayman]

From my understanding ssdi is not permanent. The qualification is reviewed after a period of time which varies based on the qualifying disability.

SSI is not permanent because it is income based and as such, subject to continual review at least in regard to the recipients income. The medical qualifications are subject to review just as those for ssdi are.

As to the payment affecting your benefits.

I believe the money will be applied to your current year. That would mean no requirement to repay benefits already recieved.


From what I understand about ssdi and ssi;

If they apply it as a single month income it should not affect your ssdi at all. If they extrapolate it over a year it still should not affect your ssdi since there is a period of 9 months where you can have unlimited income. After that if your income still exceeds the allowed amount you enter a grace period where you will recieve basically 3 more months benefits before losing them. That gives you your years worth of income covered. Even if it is extended beyond that for some reason it only causes your benefits to be stopped until your income falls below the allowed amount where your benefits will restart.

Regarding ssi; A very quick read on the ssa site shows they spread it out over a year. That means most likely you will be disqualified for ssi for one year.

 

[Old Dog]

Thank You for the fast response. I am collecting just Social Security Disability and a couple of small state pensions. I'm well below 60 years old. I was really afraid they would want my Disabilty payments back...major ouch. The amount they are giving me is equal to one year wages when I was working for them in 2012 when things ended. The check will be issued here in the next week or two and have the usual deductions taken out of it. I expect about 40 percent of it will disappear to IRS and Social Security I'm sure.

 

[justalayman]

Make sure you report it as required and go with what happens but if ssa (where ssdi comes from) uses the same rules as ssi, they apply it to the period it is recieved. There is a poster here that is very knowledgeable about these matters. With any luck s/he (I just don't know) will catch this and confirm or correct me.

 

[Old Dog]

Make sure you report it as required and go with what happens but if ssa (where ssdi comes from) uses the same rules as ssi, they apply it to the period it is recieved. There is a poster here that is very knowledgeable about these matters. With any luck s/he (I just don't know) will catch this and confirm or correct me.

No all I get from Social Security is Disability and Medicare (finally)

 

[justalayman]

No all I get from Social Security is Disability and Medicare (finally)

I understood that the first time you said that. I was merely explaining that ssi does use the rule the money is applied in the period recieved and if ssdi follows that rule there should be no concern of paying back anything.

And since all your money comes from ssdi, even if they did make it retroactive income it should still not cause a problem since you are allowed an income as I described previously.

 

[Onderzoek]

Hi, I am currently on permanent SSI/Disability Three years ago I was released by my employer for health reasons (2012) I filed for Disability in mid 2013 and was awarded SSI/Disability in mid 2014 I had filed civil action against the employer early 2013 Just recently through mediation it was resolved and they are issuing me a check (2015) for a years back wages. Will I have to repay SSI/Disability back my SSI benefits from this past year although I did not actually work for the employer since late 2012? What is my best options....if any? Thank You

First you need to be sure what program you are receiving benefits under. There is no such thing as permanent SSI/Disability.

There is Supplemental Security Income (SSI) which is a program that pays benefits to low income disabled and elderly. A welfare program. So if that is what you are receiving then any money you get from any source - wages, unemployment, private disability, inheritances, insurance settlements, gambling winnings, mediation awarded checks - count as income in the month received. Doesn't matter when it was due. What matters is when it is paid.

There is Social Security Disability Insurance (SSDI) for disabled persons with enough work credits. It is not a welfare program. Worker's comp and public disability benefits reduce the SSDI; wages and self-employment can start a trial work period. My guess is that you are on SSDI and that this check will be considered wages and FICA taxes will be withheld. And it may not end up counting as anything at all since it is not for work you are currently doing.

My best answer is that you have not provided enough information for an answer. You should call SSA when you get the check.

 

[Old Dog]

First you need to be sure what program you are receiving benefits under. There is no such thing as permanent SSI/Disability.

There is Supplemental Security Income (SSI) which is a program that pays benefits to low income disabled and elderly. A welfare program. So if that is what you are receiving then any money you get from any source - wages, unemployment, private disability, inheritances, insurance settlements, gambling winnings, mediation awarded checks - count as income in the month received. Doesn't matter when it was due. What matters is when it is paid.

There is Social Security Disability Insurance (SSDI) for disabled persons with enough work credits. It is not a welfare program. Worker's comp and public disability benefits reduce the SSDI; wages and self-employment can start a trial work period. My guess is that you are on SSDI and that this check will be considered wages and FICA taxes will be withheld. And it may not end up counting as anything at all since it is not for work you are currently doing.

My best answer is that you have not provided enough information for an answer. You should call SSA when you get the check.

I am on strictly SSDI**************......NOT SSI

 

[Onderzoek]

I am on strictly SSDI**************......NOT SSI

Glad that is straightened out.

My original post. This money will probably be paid to you as wages so it will show up on your earnings record as wages. You are not the first person to be paid wages after they stopped working (sick pay, bonuses, commissions) so you will need to report it to SSA and provide proof that it is not from work you are currently doing. Then it won't impact any trial work month. Keep the documents on this for at least two years, possibly four or five or forever.