Overview of Other State and Federal
Work Incentives & Programs
Hosted/Facilitated by: Miranda Kennedy with the NDI Technical Assistance Team
Presented by: Kevin Nickerson and Mary Lynn ReVoir with the NDI Technical
Assistance Team
U.S. Department of Labor
2013 Ticket/EN Series
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Disability Employment Initiative
(DEI)
• DEI Projects at the state level and/or local level participating
LWIBs are required to become Employment Networks under
Social Security Administration’s Ticket to Work Program.
• Training and Technical Assistance to DEI Projects in attaining
Employment Network status and implementing effective EN
operations is provided under U.S. DOLETA contract with NDI
Consulting, Inc. and the National Disability Institute (NDI).
• Evaluation of the impact of the DEI Projects implementation
and outcomes as Employment Network will be provided under
U.S. DOL ODEP contract with Social Dynamics.
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Learning Objectives
Upon completion of this training webinar, DEI grantees
and participants and partners from the public
workforce system will have the following:
• A better understanding of programs and services (both
State and Federal) that can support the efforts of our
Ticket holders
• An understanding of how these Work Incentives can
assist in job placement, and retention
• An understanding of Tax Incentives available for
businesses and how these are connected to Ticket to
Work
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Ticket/EN Subject Matter Expert
Kevin Nickerson
E: knickerson@ndi-inc.org
P: (607) 272-7570 Ext. 136
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Agenda
• Overview of expanded Medicaid eligibility
through Medicaid Buy-In programs and
Section 1619(b)
• Overview of two important, supporting
Housing and Urban Development (HUD)
programs: Earned Income Disregard, and
Family Self-Sufficiency programs
• Overview of Tax Incentives
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Why Consider Other Programs?
• SSA benefits provide a sense of financial stability
• Ticket to Work is about Self-Sufficiency so building the
Financial Stability of the Ticket Holder should be part of
the plan
– Letting go of SSA is more easily palatable with a plan
for financial stability
• View the DEI archived training to learn more about
financial stability and asset building programs at:
www.dei-ideas.org
• Like SSA benefits, other federal and state benefits are
often tied to resources and income.
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Medicaid Buy-In Program
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Medicaid Buy-In
• Medicaid Buy-In programs allow states to expand
Medicaid coverage to workers with disabilities who
are not typically eligible for Medicaid due to their
income and assets
• States design their Medicaid Buy-In program
(within certain parameters) to meet their State’s
unique needs, resources, and objectives
• To be eligible for the Buy-In program, an individual
must have a disability (as defined by the Social
Security Administration), have earned income, and
meet any other financial eligibility requirements
established by their state
Medicaid Buy-In
• State rules vary regarding eligibility for Medicaid
Buy-In programs, however, the purpose of MBI is to
allow for expanded access to medical coverage for
working individuals with disabilities
• Some states have evolved program eligibility over
the years, to exclude retirement accounts from
counting as a resource (i.e. NY, Iowa, CA, and
others)
• Resource limits for MBI are generally higher than
for Medicaid, through other avenues of eligibility
Medicaid Buy-In
• Remember that this can be a resource for customers with
disabilities that may NOT be receiving SSA benefits,
however, meet similar disability criteria (a separate state
disability determination process is necessary)
• This program targets individuals who receive SSDI benefits,
since SSI recipients generally have Medicaid already
– When to use: MBI can be a powerful aide for Ticket holders in
managing health care costs, and in many cases, eligibility for this
program can be an incentive to return to work (i.e. if Ticket holder
currently has a Medicaid “spend-down”)
– This program should be explained to Ticket holders as a part of
developing your employment plan
Medicaid Buy-In
• For further information, see the following sites:
– Case Studies from 9 States, by U.S. Department of Health and
Human Services: http://aspe.hhs.gov/daltcp/reports/eicasest.htm
– Policy Research on Medicaid, by Mathematica:
http://www.mathematica-mpr.com/disability/medicaidbuy-in.asp
• You should research your state specific Medicaid BuyIn program for specific eligibility details
Check with Your State Medicaid office to learn more
about Buy-In
Expanded Medicaid Coverage for
SSI Recipients: 1619(b)
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SSI & Medicaid Eligibility
• Remember that for SSI Recipients, Medicaid
coverage may be maintained, even when
receiving NO cash benefits, due to earned
income, through 1619(b)
• States have individual income thresholds under
1619(b)
• This Work Incentive can be an empowering tool
when assisting SSI recipients in the return to
gainful employment, just as Medicaid Buy-In is
Understanding 1619(b)
• Under Section 1619(b), Former SSI Recipients Can
Still Maintain Medicaid:
– The person must lose eligibility for SSI cash benefits due to excess
earnings, or, because they exceed the “break-even point”
– A single person living alone in 2013 will lose SSI cash benefits if
gross monthly wages are $1,679 or higher
– A person living with others in 2013 will lose SSI cash benefits if gross
monthly wages are $1,551 or higher
• NOTE: Figures based on Federal Benefit Rate only
– The person’s disability must continue
Understanding 1619(b)
• To find out your states 1619(b) threshold, see:
https://secure.ssa.gov/poms.nsf/lnx/0502302200
– Note that some states use Federal SSI eligibility for
automatic connection to Medicaid eligibility, when
individuals receive SSI, these are 1634 states
– Some states use their own criteria
– Some state uses at least one criterion that is more
restrictive than the SSI program, these are 209(b) states
– From SSA’s Benefits Planning Query (BPQY) Handbook, see:
http://www.ssa.gov/disabilityresearch/documents/BPQY_Handbook_Version%205.2_7.19.2012.pdf
Housing and Urban Development
(HUD) Programs
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HUD Programs
• HUD offers many (over 25) programs to
support individuals in transitioning to work
– www.huduser.org/publications/pdf/w2w.pdf
• Programs vary by Public Housing Authority
(PHA)
• Two important programs that can support Ticket
to Work efforts:
– Family Self-Sufficiency (FSS)
– Earned Income Disregard
HUD Earned Income Disregard
• HUD Earned Income Disregard provides previously unemployed,
individuals with disabilities an opportunity to return to work, with no
increase in rent, for a limited period of time
• Applies to All Tenants in Public Housing Programs, and to Tenants with
Disabilities in Four Additional Types of Housing Subsidy Programs:
1. The Section 8 Housing Choice Voucher Program (not project based
Section 8)
2. Some Supportive Housing Programs
3. Home Investment Partnerships Program
4. Housing Opportunities to Persons with AIDS Program
See NLS publication:
http://www.nls.org/files/Housing%20Hotlines/HUD_Earned_Income_Disregard.pdf
HUD Earned Income Disregard
• Tenant must be “previously unemployed”, for at least one
year prior to new employment, which means:
– a person must have earned, during the 12 months prior to starting
a job, no more than would be received for 10 hours of work per
week for 50 weeks at the minimum wage
Benefits:
• First 12 months of employment allows for 100% disregard of new
wages due to employment
• Second 12 months of employment allows for 50% disregard of new
wages due to employment
NOTE: 24 months of earned income disregard must be used within
48 consecutive months
Family Self-Sufficiency (FSS)
Program
• Authorized by the National Affordable Housing Act of
1990 to assist residents of public housing and
participants of the Section 8 Housing Choice Voucher
program
• A voluntary program
• Residents sign a 5 year contract with the Public
Housing Authority (PHA) which outlines the steps both
the PHA, and family agrees to work toward with the
goal of financial independence
Family Self-Sufficiency (FSS)
Program
• An important aspect of FSS is the support that
participants receive in developing a plan that leads to
self-sufficiency
• Typical supports that participants of FSS would receive,
might include:
–
–
–
–
Job-readiness skills and employment opportunities
Building plans that identify barriers and solutions for success
Financial Literacy training and goal setting
Case management and referrals to local resources
– Establishing good credit
FSS Program:
How Does it Work?
• Residents living in public housing or receiving Section
8 Housing Choice Vouchers, required to pay 30% of
their adjusted income for rent and utilities
• Although this provides for relatively low rent costs, the
return to work can increase this cost, creating a
potential work disincentive
• FSS allows participants to save money in an interestbearing escrow account
FSS Program:
How Does it Work? Cont.
• An escrow credit, which is calculated by the PHA, and
which is determined by the increased earnings of the
participating family, is deposited in the FSS account, rather
than towards increased rent
• As earnings of participants increase, so do their rents,
however, even though paying more in rent, an amount
equal to the increase in rent is deposited into participants’
escrow account each month
• Note: Housing Authorities are reimbursed by HUD, to cover
lost rent, for individuals in FSS
When to Utilize FSS Program Work
Incentive?
• Because FSS benefits those who have increases in
earnings, timing of when to enter FSS can make a
difference
• It is advantageous for your customer to work closely
with their FSS Coordinator, to determine whether to use
EID, or FSS, and if both, in which order (cannot be used
concurrently)
• To find your local Public Housing Authority, HUD has a
contact list for each state, located here:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_in
dian_housing/pha/contacts
Ticket/EN Subject Matter Expert
Mary Lynn ReVoir
P: (515) 975-2344
E: mlrevoir@ndi-inc.org
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Tax Incentives
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Tax Incentives
• Available to eligible businesses for recruitment
and hiring of persons with disability
• Some Tax Incentives can apply to customers
with disabilities
• Tax Credits or Tax Deductions
• May be federal or state / some can tap into
federal and state concurrently
• May require eligible business size or tax status
Factors to Consider
• This is not a tool that will be used with all Ticket
holders, as it is not in the best interest, in every
case to disclose disability
• Explain to the Ticket Holder so they decide as
part of disclosure and marketing self
• Some employment applications include
information asking if member of eligible targeted
group
Wage Related Tax Incentives
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What is Work Opportunity Tax
Credit (WOTC)?
• WOTC authorized by the Small Business Job
Protection Act of 1996 (P.L. 104-188), is a federal
tax credit that encourages employers to hire
targeted groups of job seekers by reducing
employers' federal income tax liability.
• It can help to tip the scales in cases when an
employer is deciding which qualified candidate to
hire.
• For Job Developers, it can be an effective tool in
marketing qualified candidates to local employers
News Regarding WOTC
On January 3, 2013, the President signed into law the
American Tax Payer Relief Act of 2012, which authorizes an
extension of the WOTC program:
– Continues authorization of all veteran target groups (including those
implemented under the VOW to Hire Heroes Act) until December
31, 2013
– Retroactively reauthorizes all WOTC non-veteran target groups,
from December 31, 2011 to December 31, 2013
– Retroactively reauthorizes Empowerment Zones, which determines
eligibility for the summer youth target group, from December 31,
2011 to December 31, 2013
NOTE: Information from USDOL, for more information, see:
http://www.doleta.gov/business/incentives/opptax/whatsnew.cfm
Who is Eligible for WOTC?
Individuals from following specified targeted groups are
eligible:
– Qualified TANF recipients
– Qualified Veterans receiving Supplemental Nutrition
Assistance Program (SNAP)
– Qualified unemployed Veterans (under the Vow to Hire
Heroes Act of 2011) Fact sheet found here:
http://www.doleta.gov/business/incentives/opptax/PDF/vet
erans_fact_sheet12_1_2011.pdf
– Qualified Ex-Felons
– Qualified Designated Community Residents (residing in
an Empowerment Zone)
More Targeted WOTC Groups
Individuals from specified targeted groups are
eligible for this tax credit:
– Qualified Vocational Rehabilitation Referral (person who
is has Ticket assigned to SSA approved EN)
– Qualified Summer Youth
– Qualified SNAP recipient (ages 18-39)
– Qualified SSI Recipient
– Qualified Long-term Family Assistance recipients
NOTE: Ticket to Work participants are eligible for WOTC
How Does WOTC Work?
• There are variations from group to group in maximum
credits available
• Full Rate: In general, an employer is eligible for 40%
of the first $6,000 in wages, or a $2,400 tax credit for
the first year of employment
• Need to be retained a minimum of 400 hours
• Eligible for up 25% of the first $6,000 in wages, or
$1,500 for individuals retained for a minimum of 120
hours of employment
How Employers Apply for
WOTC?
• Paperwork needs to be submitted to state
workforce agency, NOT to USDOL
• Seek information from state WOTC contact
– Form 9061 to determine eligibility for applicant
– Form 8850 signed by both the employer and
applicant post hiring within 28 days
– Form 9062, a conditional certification, is used when a
job ready applicant has been identified by a
participating agency as an eligible member of a target
group (such as VR)
NOTE: Filing all appropriate paperwork is the
employers responsibility
Accessibility Related
Tax Incentives
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Federal Architectural &
Transportation Tax Deduction
• Businesses may take an annual tax deduction of
up to $15,000/year for expenses incurred to
remove physical, structural, and transportation
barriers for persons with disabilities at the
workplace.
• Examples cost of: providing accessible parking
spaces, ramps, and curb cuts; providing telephones,
water fountains, and restrooms which are accessible
• Additional information - Federal Office of Chief
Counsel, IRS
Disabled Access Tax Credit
• Federal tax credit – IRS Code 44 IRS Form 8826
• For small business
– In the previous year revenue maximum of $1 million or had 30 or
fewer full-time employees
• Small businesses may take an annual tax credit for
making their businesses accessible to persons with
disabilities
• Examples of costs: sign language interpreters for
employees or customers who are hard of hearing;
readers for employees or customers who have visual
impairments; the purchase or modification of adaptive
equipment
Summary
Next Steps
Q&A
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Summary
In today’s presentation we covered the
following:
Other Federal & State Work Incentives
•Medicaid Buy-In
•1619B Work Incentive
•HUD Programs including Family Self Sufficiency
Available Tax Incentives and Factors to Consider
•Work Opportunity Tax Credit
•Two Accessibility Related Tax Incentives
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Next Steps
Join us for Part 6 of our Ticket to Work series
“Ticket Assessment and Individual Work Plans” on
Thursday, April 11th from 3pm to 4pm EDT
DEI grantees, partners and members of the public workforce system
will come away from this training with the following:
• Have an understanding of all the elements involved in assessing Ticket
holders
• View a common customer flow of identifying Ticket holders and the
decision making process of assigning a Ticket
• Learn about options available to workforce EN for IWP formats
• Obtain an overview of the available workforce IWP template
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Questions/Comments
If you have a comment or
question you can:
A: Submit it to the host in writing
via the Chat or Q&A Box to the
right, or…
B: Click on the “raise hand” icon
to have your line un-muted and
ask your question/make your
comment.
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Contact Information
Kevin Nickerson
NDI Technical Assistance Team
knickerson@ndi-inc.org
Phone: (607) 272-7570 Ext. 136
Mary Lynn ReVoir
NDI Technical Assistance Team
P: (515) 975-2344
E: mlrevoir@ndi-inc.org
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