Who needs a Representative Payee?

Children under 18, beneficiaries who are determined to be legally incompetent and beneficiaries that the Social Security Administrations has determined are not capable of managing their benefits.

While most people receive their Social Security and Supplemental Security Income (SSI) payments directly, some need assistance in managing their benefits. Payments to these individuals are paid through a representative payee who receives the check on behalf of the beneficiary and provides for their personal needs.

For many beneficiaries, a family member or friend serves as the payee. For some individuals, an Organizational Representative Payee is chosen.

  • Representative Payees understand the needs of the beneficiary (i.e., food, clothing, shelter, medical expenses and personal items)
  • Social Security payments are used to meet beneficiary needs
  • Any money left over after meeting the beneficiary’s needs are conserved
  • Income and expense records are kept for each beneficiary for at least 2 years per Social Security guidelines and are available for review.
  • Annual filings and other Social Security reporting are completed in compliance with Social Security requirements.

The law permits a qualified organization to collect from an individual a monthly fee for expenses incurred in providing services performed as such individual’s representative payee.

For 2021 the fee is limited to the lesser of (1) 10 percent of the monthly benefit involved, or (2) $45 per month ($84 per month in any case in which the individual is entitled to disability benefits and the Commissioner has determined that payment to the representative payee would serve the interest of the individual because the individual has an alcoholism or drug addiction condition and is incapable of managing such benefits).

Fee for Services Performed as a Representative Payee (ssa.gov)

Special rules make it possible for people with disabilities receiving Social Security or Supplemental Security Income (SSI) to work and still receive monthly payments and Medicare or Medicaid. Social Security calls these rules “work incentives.” Below are some rules that apply under each program.

  • Trial Work Period
  • Extended Period of Eligibility
  • Unsuccessful Work Attempts
  • Earned Income Exclusion
  • Plan to Achieving Self Support
  • And More!