Social Security

A. Purpose

This EM is to inform field office (FO), Office of Disability Operations (ODO) and Program Service Center (PSC) technicians about updates to form SSA-3033 Employee Work Activity Questionnaire. This EM also clarifies policy and procedures for developing subsidy for Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) initial claims, and SSDI work continuing disability reviews (work CDRs).

B. Background

In audit No. 22021019, the Office of the Inspector General (OIG) found that SSA misapplied subsidy in 54 of the 200 (27%) sampled cases, because the form and policies are unclear. Specifically, technicians 1) applied incorrect subsidy amounts, 2) did not document verification of the presence or amount of subsidy, and 3) applied subsidy without clarifying inconsistent information with employers.

OIG recommended that SSA (1) update subsidy policy to include specific instructions for SSA employees to verify, document, and apply the correct subsidy amount and (2) update form SSA-3033 with clearer instructions for employers on how to complete the form.

C. Policy

An employer may subsidize the earnings of an employee with a serious medical impairment by paying more in wages than the reasonable value of the actual services performed. When this occurs, the excess will be regarded as a subsidy rather than earnings. We will then subtract the value of the subsidy from the person's gross earnings to determine if they have performed substantial gainful activity.

For example, when a person with a serious impairment does simple tasks under close and continuous supervision, our determination of whether that person has done substantial gainful activity will not be based only on the amount of the wages paid. We will first determine whether the person was being paid more than the reasonable value of the actual services performed.

D. Procedure for developing documenting and processing subsidy decisions

1. When to develop subsidy
a. For initial claims, the technician must develop alleged subsidy if the claimant worked above SGA since the alleged onset date or after the date they alleged making changes at work due to their impairment (DI 10505.035).
b. For work CDRs, the technician must develop alleged subsidy if the claimant worked above SGA within the review period and,
· the subsidy has never been developed; or
· more than 24 months have passed since the effectuation date of the review in which subsidy was last developed; or
· there has been a change of employer, job duties, or rate of pay since subsidy was last developed.
c. A technician should not develop subsidy
o When making a TWP month determination, or
o When the individual has not performed SGA within the review period
d. A technician may develop subsidy when there is a strong indication that subsidy exists. For example:
o There appears to be a marked discrepancy between the amount of pay and the value of the services; or
o The nature and severity of the impairment indicates that the employee receives unusual help from others in doing the work; or
o The employee is involved in a government-sponsored job training and employment program, see DI 10505.025B
o The person is in the military service and is being treated for a severe impairment, see DI 10505.023.
o Subsidy is not currently alleged but has been verified for the same employer and applied in a previous decision.
2. How to develop subsidy
a. Contact the employer or knowledgeable source listed on form SSA-821 by phone and collect subsidy information on an SSA-3033 or a Report of Contact. If telephone contact is unsuccessful, mail form SSA-3033 to the employer.
b. Record the information
· For Work CDRs, document the decision in the work CDR processing system (currently eWork) and code the percentages as indicated on the form (see E.4. below).
· For initial claims, document the determination on form SSA-823 Report of SGA Determination.
c. Upload forms into eView or Evidence Portal.

1. Definition of subsidy
We updated form SSA-3033 to better define subsidy, to clarify why we need the information, and how we use the information to reduce countable earnings. We added examples of when a subsidy may exist.
2. Employer or knowledgeable source
We clarified that employers are not the only source of subsidy information. We added examples of other sources with first-hand knowledge of the employee’s work activity that may use this form to provide information. Knowledgeable sources include:
· Supervisors
· Employment service providers
· Job coaches, etc.
3. Response time
To be consistent with other work CDR forms, we extended the response time to return the form to 15 days. We added “or as soon as possible” to encourage the source to return the document even if they could not meet the 15-day deadline.
4. Percentage
We revised the scope of the percentage selection. We included values of subsidy from 10% - 100%. We included an “Other” option should the employer or knowledgeable source calculate a subsidy other than those listed, to make the form easier to understand and complete, and to provide for more consistent agency application of subsidy. We added examples of how to calculate a subsidy. If the source marks 30%, then the SSA technician can use that value without additional calculation or interpretation.
5. Unsuccessful Work Attempt (UWA)
In 2016, we published a final rule that removed the requirement for employer verification of a UWA, therefore, we removed the questions about UWAs from the form.