Another exception to the rule regarding SGA is called sheltered or subsidized work. This exception typically occurs in either sheltered workshops or when an individual is working for a friend, family member, or friend of the family; however, this is not always the case. In such circumstances, an employer may subsidize an employee’s earnings by paying him or her more than the reasonable value of the actual services performed. Any excess income is considered a subsidy rather than earnings.
This means that while not all of the income from sheltered or subsidized work will be counted against the individual, the income which represents the actual value of the work performed will be considered. For example, if John Doe makes $20 per hour working at Walmart as a greeter, it is highly unlikely that his performance of greeting customers as they enter the store is actually worth the full $20 per hour that he is being paid. Assuming the actual value of greeting customers as they walk through the doors is only $11 per hour, the remaining $9 per hour would be considered a subsidy. Therefore, the additional $9 per hour should not count against him for purposes of determining whether or not he is working at the level of SGA.
In the next entry, we will discuss a third exception referred to as impairment-related work expenses. If you have any further questions regarding this topic, please feel free to contact one of the attorneys at Smith Godios Sorensen Inc. toll-free at 877-230-5500.