TN 68 (04-96)

Citations:

Sections 409(a)(2), 414(e)(3), 1612(a)(2), and 1612(b)(6) of the Social Security Act

Social Security Act;

20 CFR 416.1124(c)(12);

45 CFR 238

A. Background

Many governmental assistance programs require that certain recipients work in exchange for the assistance provided. Most often the amount of the assistance payment is divided by the minimum wage and the recipient required to perform some service for the resulting number of hours. Usually a participant in such a work program is given money to cover any expenses incurred (e.g., carfare, special clothing, miscellaneous, etc.). Programs connected with general assistance have various locally established names. Programs connected with AFDC include the Community Work Experience Program (CWEP), and the Work Incentive Program (WIN). Programs are often run as demonstrations or pilot projects.

B. Policy

The fact that an individual is required to work in exchange for an income based on need (SI 00830.170) or assistance based on need (SI 00830.175) payment does not change the nature of the payment. For SSI purposes, the payment in such situations is an assistance payment and is not earned income.

NOTE: Do not confuse work supplementation programs connected with AFDC with programs which require an individual to work in exchange for income based on need. Work supplementation programs pay wages which are earned income. The family may or may not receive an AFDC payment in addition to the earned income.

C. Procedure

• Verify the assistance according to the appropriate instructions. Follow the instructions in SI 00830.170 if IBON is involved;
  SI 00830.175 if ABON is involved; SI 00830.400 if AFDC is involved.

• Assume that any expense money provided in connection with a governmental work program equals the expenses incurred and does not result in any income. Verify with the paying agency or through documents in the individual's possession that any alleged expense money is provided as such. A precedent may be used. If a precedent has been established, document the file to show this.