In Self-Employment, Net Earnings from
Self-Employment (NESE) is measured as “income”, not
gross business income.
Determining the break even point (the point at which business income meets business
costs) is a key factor in understanding how to manage your benefits and your
business in a way that assures success.
Based on a publication from The Center
for Human Development, a program of the University of
Alaska Anchorage, College of Health and Social Welfare,
a University Center for Excellence in Developmental Disabilities
Education, Research and Service (UCEDD).
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One of the Social
Security Administration’s highest priorities
is to help people with disabilities achieve independence
through employment. For the person who receives Social
Security Disability Benefits and wants to explore self-employment,
planning is critical.
For instance, SSI recipients have resource
limits that affect eligibility for cash
and Medicaid benefits and may limit traditional wage
employment opportunities. However, in self-employment,
the entrepreneur may be allowed to have unlimited accrual
of certain resources.
SSDI recipients have a different set of complicated
rules, and requires
more in-depth planning related to self-employment.
One advantage is the SSDI recipient may be able
to deposit their entire SSDI check into a Plan to Achieve
Self-Support (PASS) account; they then become
eligible for SSI benefits.
This arrangement allows for building a start up or
operation fund using the SSDI funds in the PASS account.
The beneficiary is then able to receive SSI cash benefits
to assist with living expenses. As an SSI recipient,
they also become eligible for Medicaid health benefits.
In any traditional wage-paying job, each hour worked
produces an hourly wage that is countable income and
directly affects benefits.
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