St Louis, MO asked in Social Security for Missouri

Q: Payment in lieu of vacation. Does it count towards monthly income limit for social security disability income?

My daughter is disabled and works a part-time job. Her employer is shifting the employees to a new company and in the process is going to pay out any accrued vacation before the move. The new company is eliminating PTO for part-time workers, so it can't carry over. This will definitely put her over the $1050 monthly trial work period amount and over $1450. Any suggestions on how to address this with Social Security?

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: The Social Security Administration (SSA) typically views payments in lieu of vacation as wages if they're paid because of a termination or change in employment status. These wages could impact your daughter's eligibility for Social Security Disability Income (SSDI) if they exceed the Substantial Gainful Activity (SGA) limit for the month they're received. It's vital to inform the SSA about this payment promptly. Documentation regarding the nature of the payment and its relationship to the job transition can be useful. Proactively addressing the situation might help in clarifying her continuing eligibility. If there are concerns about potential overpayment or eligibility issues, discussing the specifics with an attorney familiar with Social Security matters is recommended.

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