A small business can produce work activity without producing a lasting livelihood. SSA’s October 17, 2016 final rule addresses one part of that distinction by removing extra conditions for unsuccessful work attempts lasting three to six months, including self-employment. It does not turn every brief business venture into proof of disability or guarantee benefits when a venture ends. [2016-24873]
The May 11 proposal explains that SSA considers income or the value of an individual’s activities to a business when evaluating substantial gainful activity for the self-employed. It also describes gainful work as work for pay or profit, including the kind usually done for profit even when no profit is realized. A business’s bottom line therefore is not the whole policy question. [2016-24873][2016-10932]
The final amendments to sections 404.1575 and 416.975 apply the shorter-attempt standard to work lasting six months or less. The relevant interruption must result from the impairment or removal of special conditions that permitted work, with other applicable conditions retained. Our reading is that entrepreneurs need to distinguish commercial disappointment from an impairment-related inability to sustain work; the rule does not equate them. [2016-24873]
Most changes take effect November 16, 2016. Separate expedited-reinstatement eligibility amendments take effect April 17, 2017, allowing qualifying former beneficiaries to request reinstatement in the month they stop substantial gainful activity. That is not automatic benefit restoration. The proposal and final rule explain one agency’s policy choices, not independent evidence that more businesses or jobs will result from them. [2016-24873][2016-10932]
Source documents
- Unsuccessful Work Attempts and Expedited Reinstatement Eligibilityhttps://www.govinfo.gov/content/pkg/FR-2016-10-17/html/2016-24873.htm
- Unsuccessful Work Attempts and Expedited Reinstatement Eligibilityhttps://www.govinfo.gov/content/pkg/FR-2016-05-11/html/2016-10932.htm