How Does Using Paid Time Off Impact an SSDI Application?

If you are applying for Social Security Disability Insurance (SDDI), you may wonder if you have to stop working before you apply. You may also wonder if you are allowed to use your sick time, vacation time, or some other paid time off.

The first thing that the Social Security Administration (SSA) looks at when determining if you meet their definition of having a disability, is whether you are currently working. SSA believes that if you are working, then you are able to work and do not have a disability. But there is a big difference from working 40 hours a month as a receptionist and working 160 hours a month as an attorney. Each year, the SSA establishes a dollar threshold amount, and if you make under that amount, you are not considered to be working, according to SSA. This threshold is called Substantial Gainful Activity (SGA).

In 2017, the SGA is $1,170 per month for individuals with a disability other than blindness. If you make more than the SGA, you will not qualify for SSDI and your claim will be denied. The SGA for blind applicants is $1,950 per month. These amounts are your gross earnings.

When determining your income, the SSA will only look at earnings derived from actual work activity in the month under consideration.  That means that sick days, vacation days, or other paid time off will not be considered.

So, if you worked 5 days in a month, and then took 15 sick days, only the 5 days of work will count towards the SGA threshold. If you work 2 weeks in a month (10 days) and then take the next 10 days off using accumulated vacation time, only the 10 days you worked will counts towards the SGA.

This is important, because it means that you can apply for SSDI, without having to first use up all your paid time off.  And, since there is a five-month waiting period for SSDI benefits to begin, you paid time off can help bridge that gap.

For more information about SGA and applying for SSDI, visit: https://www.ssa.gov/pubs/EN-05-10029.pdf or https://secure.ssa.gov/poms.nsf/lnx/0410505010.