TN 57 (12-23)

SI 00520.010 Employees of Institutions

CITATION: Social Security Act, Section 1611(e)(1)(A)

A. Policy on employees of institutions

1. Policy on when employee is not a resident of an institution

An individual is not a resident of an institution for Supplemental Security Income (SSI) purposes even if they were admitted as a resident and have not been discharged or released, if:

  • an employer/employee relationship exists between the institution (except a penal institution) and the individual; and

  • the individual is provided food and shelter under the same rules as other employees.

NOTE: If the institution requires employees to pay for food and shelter either by making deductions from wages, by billing them, or by crediting the food and shelter as wages, the same procedures must apply to the individual for them to be considered an employee.

2. Residents of penal institutions who are assigned jobs

Residents of penal institutions who are assigned a job are not eligible for SSI under this provision.

3. Policy on> employer/employee >relationship

If an institution reports that an individual receives wages even though they are lower than minimum wages, and control exists, an employer/employee relationship may exist even though the work is reported to be in connection with a vocational training or therapeutic program. If an employer/employee relationship exists then the resident is not a resident of a public institution.

B. Procedures for processing employee of an institution situations

1. Procedure for using common >law control test for employee of an institution situations

Use the common law control test in RS 02101.020 to develop the employment issue if the SSI claimant or recipient who is living in an institution alleges an employee relationship; that is, that the individual is providing a service to the institution for remuneration.

NOTE: It is immaterial whether the services are covered for purposes of Title II wage credits. If the application of the test indicates an employer /employee relationship, an individual is an employee and not a resident of the institution.

2. Procedure for treatment of vocational training

Give substantial weight to an institution's report that an individual is in a vocational training program for which residents exercise the choice of participation and do not receive either pay or credit in lieu of cash. Such a situation suggests that no employer/employee relationship exists.

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SI 00520.010 - Employees of Institutions - 12/04/2023
Batch run: 12/04/2023