Tests For Evaluating Substantial Gainful Activity
As a Greensboro disability attorney can explain, if you are self-employed, there are three tests that the Social Security Administration will use to determine whether or not you are engaged in substantial gainful activity.
SUBSTANTIAL INCOME FOR SIGNIFICANT SERVICES
The SSA will determine that you are engaged in SGA if you receive compensation that is above the amount listed in the SGA Earnings Guidelines. If you earn less than the amount listed in the guidelines, the SSA may determine that you are engaged in SGA based on the results of tests two or three.
COMPARISON OF WORK
The SSA will compare the relevant factors of your work with unimpaired people who do the same kind of work or have a similar business. In other words, the SSA might compare your responsibilities, duties, efficiency, energy output, hours and skills with someone who does the same work that you do, says a Greensboro disability attorney.
VALUE OF WORK
The SSA will also measure how much the work you are able to do is worth to your business. In addition, the SSA will look at how much you would be paid by an employer to do the same work, according to a Greensboro disability attorney.
RULINGS AND REGULATIONS
The SSA adheres to various regulations and rulings when conducting the three tests. For instance, the SSA will determine that you are providing “significant services” if your business is a one-person operation, no matter how few hours you work in a month.
If there is more than one person involved with the business and you contribute more than 50 percent of the time needed to manage the business, the SSA will determine that you are providing significant services. Additionally, the SSA will find that you provide significant services if you spend over 45 hours per month managing the business, even if it is less than 50 percent of the total time needed.