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b) A work activities center is:
1) A sheltered workshop, or
2) A physically separated department of a sheltered workshop having an identifiable program and separate supervision and records.
3) A work activities center is planned and designed exclusively to provide therapeutic activities for handicapped workers whose physical or mental impairment is so severe as to make their productivity capacity inconsequential.
(a) Therapeutic activities are custodial activities such as activities where the focus is on teaching basic living skills and other purposeful activity so long as work production is not the main purpose.
B. These payments are treated as follows:
1. Payments for such services are a type of earned income and are counted when received or when set aside for the person’s use.
Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).
Rule 9.7: Royalties and Honoraria.
A. These payments are defined as follows:
1. Royalties include compensation paid to the owner for the use of property, usually copyrighted material (e.g., books, music, or art) or natural resources (like minerals, oil, gravel or timber). Royalty compensation may be expressed as a percentage of receipt from using the property or as an amount per unit produced.
a) To be considered royalties, payments for the use of natural resources also must be received:
1) Under a formal or informal agreement whereby the owner authorizes another person to manage and extract a product like timber or oil; and
2) In an amount that is dependent on the amount of the product actually extracted.
2. An honorarium is an honorary or free gift, reward or donation usually provided gratuitously for services rendered (like a guest speaker), for which no compensation can be collected by law. The amount also may include payment for items other than services rendered, e.g., lodging or travel expenses.
B. These payments are treated as follows: