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The three tests for SSDI while self-employed

On Behalf of | Nov 2, 2020 | SSDI

As an employee, a person may never see the amount of money he or she puts into social security without a hard look at their or their employer’s records. The government asks for the same amount if a person acts as a self-employed worker as well. One issue that comes up though is determining whether a disability hampers a sufficient amount of wages and labor for a self-employed individual. 

As Florida’s health site describes, the state commission evaluates and frequently reviews a person’s medical eligibility. The Social Security Administration determines a person’s financial eligibility through a variety of methods. One method is the three tests in order to determine what they call substantial gainful activity. 

Test one

According to the SSAs statutes, if a person operates a business alone, any and all services he or she renders is significant to the business. If a person operates it with others, their hours cannot break over a certain amount, depending on the circumstance. 

Substantial income refers to the net gain after accounting for all business expenses. If a person’s income is low enough, according to the SSA’s tables, and is lower than what it once was before the disability, then the income may not be substantial enough. 

Test two

After the first test, the second test determines whether a person’s work activity or income is comparable to unimpaired individuals. If their activity is comparable, then the question becomes whether the disability affects a person’s employment. 

Test three

After the second test, even if a person’s activity or income is incomparable to unimpaired individuals, it may still be gainful if his or her work activity is worth the amount on the SSA’s tables. If a person’s work activity is worth a certain amount, then it is significant. 

If the SSA finds the activity or income to be significant or substantial, a disability claim may fall through.