SI 00830: Unearned Income

Effective Dates: 02/09/2015 - Present

TN 80 (04-99)

Citations:

Social Security Act, as amended, section 1612(a)(2)(B);

A. Introduction

State disability insurance benefits are payments made in 5 States (California, Hawaii, New Jersey, New York, and Rhode Island) for disabilities that are not work-related. These programs are meant to replace wages lost due to illness or off-the-job injury. Benefit amounts are based on previous earnings. Individuals covered by State disability insurance programs are generally the same occupational groups covered by the unemployment compensation systems.

Employee contributions finance the State disability insurance programs. Provision for employer contributions is made under varying circumstances in most States. In New York, the Workers Compensation Board administers the program; in the other States, the unemployment compensation boards administer the program.

B. Policy

State disability insurance benefits are unearned income.

C. Procedure

1. Overpayment Question

Ask if any benefits otherwise due are being withheld to recover an overpayment. If the answer is yes, use the double counting instructions in SI 00830.110 to determine how to count the benefits.

2. Verify Amount

Ask the individual to bring an award letter, notice of eligibility or other document, or his next check into the office to verify the payment amount. If the individual does not possess an award letter or other document, a check may be used to verify the payment amount if it is clear that the amount shown represents the gross amount.

If you are unable to verify the amount with information in the individual's possession, contact the source of the payment for verification.

3. Determine Frequency

Follow local guidelines for determining frequency. If precedent has been established, no further documentation is needed. If you are not certain about payment frequency, seek the information from the award letter in the individual's possession. Contact the source of the payment if you are unable to determine the frequency of payment using precedent or proofs in the individual's possession.

4. Contacting the Source of Payment

If you must contact the source of the payment to verify information, use telephone contact whenever possible.

5. Payment Date

If the payment is picked up in person, accept the individual's allegation as to the day the compensation is received unless there is reason to question the allegation. If the payment is mailed, assume the payment is received 5 days after the payment or mailing date unless the individual alleges it was received sooner, in which case accept the allegation.