From the abstract of How Does Contingent Work Affect SSDI Benefits?, a study by Matthew S. Rutledge, Alice Zulkarnain, and Sara Ellen King for the Center for Retirement Research at Boston College:
Some studies have found that contingent workers – including independent contractors, consultants, and those in temporary, on-call, and “gig economy” jobs – make up an increasing share of the labor force. How does this group of workers interact with Social Security Disability Insurance (SSDI)? ...
The study finds that SSDI application rates are about one-quarter smaller for older eligible contingent workers than for traditional workers of the same ages. Contingent workers are also about one-third less likely to be awarded disability benefits. The lower application and award rates are likely due in part to contingent workers’ lower eligibility rates and lower potential benefits. The application and award rates are also lower for contingent workers who have a chronic condition, work limitation, or limitation in their Activities of Daily Living. These results suggest that contingent workers would benefit from a greater availability of information and assistance in navigating the SSDI application process.The study talks about the "gig economy" allowing people to work only they feel like it. That can allow individuals with health problems to continue at least some employment. I've seen an increase in the number of claimants who work in short term, on call and part time jobs enough to cause problems with their Social Security disability claims but not enough to support themselves.
6 comments:
From just looking at a detailed earnings query, it might be difficult to distinguish between a "gig" worker and a disabled person who keeps getting hired for work, and then fired soon after once it becomes apparent to the employer that the person cannot in fact sustain job performance expectations.
If you cant tell the person is disabled from a DEQY I will eat my hat.
Unless the person is right around SGA or above, gig income doesn't hurt the claim in my book, especially when the person previously had good earnings and is doing the gig thing to keep from going completely underwater. 25 hours of Uber Eats delivery over 7 days isn't the same thing as 40 hours over five days.
Another issue may be SSA withholding. Many gig workers get 1099ed and thus their SSA payroll tax is not withheld. They are supposed to pay self-employment taxes, but many do not. Since all of their earnings were not taxed, their benefits are smaller.
Or they get paid cash and do not report the income to the IRS, and apply anyway.
Not reporting income is a common scenario but theoretically a person can earn fifty thousand dollars a year scattered amongst several jobs, maintain this for many years and be found disabled at age 55 with a minimal degree of impairment because none of the gig jobs were relevant
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