Employment networks play a critical role in helping people with disabilities find and maintain jobs. But how exactly do these organizations get paid for their services? The payment structure for employment networks is outlined in the Ticket to Work program administered by the Social Security Administration (SSA).
What is an employment network?
An employment network (EN) is an organization or employer that has entered into an agreement with the Social Security Administration to provide employment services to Social Security disability beneficiaries. Employment networks help beneficiaries find and maintain employment so they can reduce or eliminate their reliance on Social Security disability benefits.
Employment networks provide a variety of job placement services such as:
- Career counseling
- Skills assessments
- Resume and interview preparation
- Job leads and placement assistance
- Ongoing job coaching and support
Employment networks can include state vocational rehabilitation agencies, One-Stop Career Centers, workforce investment boards, mental health agencies, and other public, private or non-profit organizations.
What is the Ticket to Work program?
The Ticket to Work program is a Social Security Administration initiative that aims to help disability beneficiaries return to the workforce. Under this program, Social Security disability beneficiaries are issued a “Ticket” that they can assign to an approved employment network.
By choosing to assign their Ticket and work with an employment network, beneficiaries can obtain free job placement services and vocational rehabilitation support. The goal is to help more beneficiaries find fulfilling jobs that reduce or eliminate their need for disability benefits.
How do employment networks get paid under Ticket to Work?
Employment networks only get paid by Social Security if the beneficiary they are working with achieves certain work-related milestones. The payment structure is based on two types of monthly payments:
- Outcome payments – These are monthly payments the EN receives after the beneficiary achieves certain work goals and earnings benchmarks. The higher the beneficiary’s earnings, the higher the outcome payment.
- Outcome-milestone payments – These are one-time payments the EN receives when a beneficiary reaches certain work milestones.
Outcome Payments
Outcome payments are the main type of payments employment networks receive under Ticket to Work. These monthly payments are based on the beneficiary’s gross earnings from work.
An employment network can only start collecting outcome payments after two conditions are met:
- The beneficiary has assigned their Ticket to the employment network.
- The beneficiary has earnings that exceed the SSA’s trial work period threshold – $970 per month in 2023.
Once these conditions are met, the EN receives an outcome payment each month that the beneficiary has earnings above the trial work threshold. The amount of the monthly payment depends on how much the beneficiary earns from working.
The Social Security Administration has established a tiered outcome payment structure:
Monthly Gross Earnings | Monthly Outcome Payment |
---|---|
$971 – $1,220 | $304 |
$1,221 – $1,970 | $762 |
More than $1,970 | $1,524 |
As shown in the table, the more the beneficiary earns from working, the higher the monthly outcome payment the employment network receives. These payments continue until the beneficiary stops working above the trial work threshold or exhausts their eligibility for disability benefits.
Outcome-Milestone Payments
In addition to outcome payments, an employment network can also earn one-time outcome-milestone payments at certain points of a beneficiary’s return-to-work process. These milestones include:
- Ticket assignment – When the beneficiary first assigns their Ticket to an employment network, the EN receives an outcome-milestone payment of $1,057 in 2023.
- Work above trial work period – The first time a beneficiary exceeds the trial work threshold ($970 monthly earnings in 2023), the EN receives a milestone payment of $2,114.
- No cash benefits for 12 months – If Social Security disability cash benefits are suspended because of earnings for 12 consecutive months, the EN earns a $2,114 milestone payment.
- No cash benefits for 36 months – A $3,428 milestone payment is made when cash benefits are suspended for 36 months.
These outcome-milestone payments are in addition to the ongoing monthly outcome payments the employment network receives based on the beneficiary’s earnings.
How does Social Security pay employment networks?
Employment networks must enroll and register with the Ticket to Work program to receive payments. Once enrolled, the EN reports a beneficiary’s work activity and earnings to Social Security on a monthly basis.
Social Security then verifies the employment and earnings information and processes payment to the EN under the payment structure outlined above. Payments owed to an employment network are offset by any overpayments made in prior months.
The EN receives payment from Social Security in the month after they report the beneficiary’s prior month’s earnings. For example, if the EN reports May earnings in June, payment would be issued to the EN in July.
Why does this payment structure encourage employment networks?
This two-part payment system provides incentives for ENs to help beneficiaries reach important work goals:
- The outcome-milestone payments encourage taking on beneficiaries as clients and achieving initial work milestones.
- The ongoing outcome payments encourage helping beneficiaries maintain high earnings that reduce or eliminate their need for benefits.
The higher the beneficiary’s earnings, the higher the payment, so the model is designed to reward steady, high-earning job placements that truly increase independence.
Conclusion
In summary, employment networks receive payment under the Ticket to Work program by helping beneficiaries achieve work-related milestones and earnings benchmarks. This outcome-based payment model rewards employment networks for successful job placements that reduce reliance on disability benefits.
The outcome payments and milestones provide financial incentives for ENs to take an active role in returning beneficiaries to steady employment, rather than simply collecting payments by taking on clients. This market-based system aims to improve the quality and outcomes of vocational rehabilitation services for Social Security disability beneficiaries.