Public Assistance and Work in the Private Sector
© 1998-2007 by Neighborhood Legal Services, Inc.
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What should I do when I get a job?

        When you get your own job, you must report this information to your caseworker. You have 10 days from the day you get your first paycheck to report your wages in a timely manner.

Will my wages affect my public assistance grant?

        Yes. Your wages will be budgeted against your grant. However, you will be eligible for "earned income disregards." Different earned income disregards apply depending on if you have a minor child in your household or not.

What is an earned income disregard?

        An earned income disregard is money that DSS disregards or considers "invisible" for public assistance budgeting purposes.

How much money is disregarded if I have a minor child in my home?

        If you have a minor child in your home you are eligible for
        (1)     $90.00 disregard; and (2) 48% disregard.

How do these disregards work?

        DSS will first subtract $90.00 from your gross income. Then DSS subtracts 48% of what is left over to get to the amount that is budgeted against your grant.

For example:

Mr. and Ms. Smith have one child. Their public assistance grant is $550.00 a month.
Ms. Smith just got a job at Acme Plumbing. She will earn $1000.00 per month.

DSS will disregard the first $90.00 of the earnings, leaving $910.00.
($1000.00 - $90.00 = $910.00).

DSS will then disregard another $436.80
(48% of $910 = $436.80).

This leaves only $473.20 for DSS to budget against the Smith's grant!
($910 - $436.80 = 473.20)

DSS then subtracts $473.20 from the $550.00 grant. The Smiths still get a grant of
$76.80, in addition to keeping all of his wages!

So instead of having $550.00 to spend each month, the Smiths have $1076.80.

How does this compare to working in private sector work force?

If Ms. Smith doesn't work in the private sector at her own job, she will get :
           (Grant) $ 550.00 per month

If Ms. Smith works in the private sector, she gets:
           (Wages) $1000.00 per month

 (Grant) $ 76.80 per month
 (Total) $1076.80 per month

The income disregards mean an extra $526.80 per month to the Smiths!

What if I do not have a minor child in the household?

        You will only get the $90.00 disregard. You will not get the 48% disregard.

What if I do not report my wages in a timely manner?

        You will not get any of the earned income disregards.

Will I still get Medicaid?

        Yes, even if you only receive a partial public assistance grant, you will be eligible for Medicaid.

Will I still get Food Stamps?

        Yes, you will still be eligible for food stamps, although the amount you receive may vary.

How long do the disregards last?

        There is no time limit; the earned income disregards last as long as you are eligible for public assistance and are working.

What if I am working and I am not getting the earned income disregards?

        If you are not getting the proper earned income disregards, call you worker and let him or her know. If they do not budget your wages correctly, contact this office to see if we will accept your case.

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