TN 102 (01-09)

Citations:

Social Security Act as amended, Section 1612

20 CFR 416.1102 - 20 CFR 416.1167

A. Introduction to Job Corps

This section provides specific information about Job Corps, a Workforce Investment Act (WIA) program. For the general policy on the WIA program, which also applies to Job Corps payments, see SI 00830.535.

B. Definitions of Job Corps Terms

1. Living allowance (student pay)

The living allowance (also called student pay) is the regular, recurring payment to Job Corps participants. It is paid bi-weekly and may include bonuses and/or incentive payments. FICA is withheld from the entire amount.

2. Readjustment allowance

The readjustment allowance is paid at the completion or termination of the program and is based on length of participation. It may include bonuses and/or incentive payments. FICA is withheld from the entire amount.

3. Dependent's allowance

A bi-weekly dependent's allowance may be paid directly to a participant's dependent. The Federal Government pays half of the dependent allowance. The other half is deducted from the participant's readjustment allowance.

4. Clothing allowance

The clothing allowance is furnished only as a voucher, redeemable at a designated clothing store. It cannot be converted to cash.

5. Transportation allowance

The transportation allowance is furnished only as tickets (usually bus tickets) that cannot be converted to cash.

6. Supportive services

Supportive services are services such as child care, transportation, medical care, meals, and other reasonable expenses provided in-kind.

C. Policy for Job Corps allowances

1. Living allowance (student pay)

The living allowance, or student pay, is considered wages.

2. Readjustment allowance

The readjustment allowance, including any amount deducted to pay the participant's share of a dependent's allowance, is considered wages.

3. Bonuses and incentive payments

Bonuses and incentive payments are wages.

4. Dependent's allowance

The dependent's allowance is unearned income to the dependent.

NOTE: It may happen that a participant is a deemor and his or her dependent is eligible for SSI. In this circumstance, only one-half the dependent's allowance is unearned income to the dependent.

5. Clothing allowance

The clothing allowance (voucher) is neither income nor in-kind support and maintenance (ISM).

6. Transportation allowance

The transportation allowance is not income.

7. When food or shelter is income

Food or shelter a participant receives from the Job Corps is ISM valued under the presumed maximum value (PMV) rule following SI 00835.300 when the participant is a resident of the Job Corps center and is not temporarily absent from his or her permanent living arrangement.

For the policy on temporary absence, see SI 00835.040. For parental deeming to Job Corps participants who reside in a Job Corps Center, see SI 00830.536C.12. of this section. For how to charge ISM in a temporary absence from a parental household situation, see SI 00835.042A.2.b. and SI 01310.165A.3. For determining whether deeming applies when a child is away at school, see SI 01310.165A.4.

8. When food or shelter is not income

Except as noted in SI 00830.536C.7. (in this section) food or shelter a participant receives from the Job Corps is not income when the participant’s stay at the Job Corps facility is a temporary absence from his or her permanent living arrangement. For the policy on the treatment of ISM from the permanent living arrangement during a temporary absence, see SI 00835.040C.2.

9. Residence in a Job Corps Center

Participants residing in a Job Corps Center that meets the definition of a public institution are not considered “residents of a public institution” for purposes of determining SSI eligibility if they are there primarily to receive educational or vocational training, and are participating in that training program.

10. Student exclusion

A Job Corps participant who is a student per SI 00501.020 qualifies for the student earned income exclusion.

11. Supportive services

Those supportive services provided in-kind which are medical or social services, (e.g., transportation to and from medical treatment, counseling, and job placement services), are not income. For the policy on medical and social services, see SI 00815.050.

NOTE: The Job Corps program is not a government social or medical services program.

12. Deeming status in a Job Corps Center

The rules regarding temporary absences for deeming purposes apply to Job Corps participants who reside in a Job Corps Center.

A participant under age 18 who is away from the parents' household to attend Job Corps training, and is subject to parental control, is considered temporarily absent regardless of the duration of the absence. In such cases, deeming applies from the parent(s) and any food or shelter received from the Job Corps is ISM. For the policy on determining if deeming applies when the child participant is away at school, see SI 01310.165A.3. through SI 01310.165A.4.

D. Identifying, Verifying and Documenting the Job Corps allowance

1. Living allowance and readjustment allowance

a. Pay slips available

If pay slips are available, request them from the individual as evidence of the living allowance. Record the following information from the pay slips on an Evidence (EVID) screen, MSSICS Report of Contact (DROC) screen and lock it, or SSA-5002, Report of Contact to document the:

• amount paid;

• pay period ending date;

• source: and

• determination that the living allowance is considered wages for SSI purposes.

If an SSA-5002 is prepared, fax it into the Non-Disability Repository for Evidentiary Documents (NDRED) or the Certified Electronic Folder (CEF), as appropriate.

NOTE: Job Corps participants are paid every other week on Fridays. The pay slip does not show the date the pay is received, but does show a pay period and date. The date pay is actually received is one week after the pay period end date. For example, if the pay period end date was April 12, the pay was received on April 19.

b. Pay slips not available

If pay slips are not available, contact the finance office of the Job Corps Center where the individual is enrolled. Document the living allowance amount provided following SI 00830.536D.1.a. or the contact person’s response. Include the date of the contact, contact person’s name, title and phone number.

2. Dependent's allowance

If you need information regarding a dependent’s allowance, contact the finance office of the Job Corps center where the participant was enrolled. Document the response using any of the media in SI 00830.536D.1.a. and include the date of contact, dependent’s allowance, receipt date, contact person’s name, title and phone number. Also, include the unearned income determination described in SI 00830.536C.4.

E. References

• SI 00815.050 - Medical and social services

• SI 00520.400 - Educational/Vocational (ED/VOC) Training

• SI 00820.510 - Student Earned Income Exclusion

• SI 00820.535 - Blind work expenses

• SI 00820.540 - Impairment-related work expenses

• SI 00820.100 - Wages – General

• SI 00830.420 - Support payments

• SI 00830.001- General Information on Unearned Income, through SI 00830.880 - Indian Fishing Rights Income

• SI 00870.001- Plans to Achieve Self-Support — Overview, through SI 00870.100 - Exhibits

• SI 01310.165 - Deeming Concept - Temporary Absence