Guide for Organizational Representative Payees

What is a Representative Payee?

A representative payee is an individual or organization appointed by SSA that receives Social Security and/or SSI payments for someone who cannot manage or direct someone else to manage his or her money. Your main responsibilities as a payee are to use the funds to pay for the current and foreseeable needs of the beneficiary (refer to http://www.ssa.gov/payee/NewGuide/duties.htm for the duties of a representative payee) and properly save any funds not needed to meet current needs. You must also keep accurate records of how you used the beneficiary’s money. With certain exceptions, a payee is not paid for payee services. However, see http://www.ssa.gov/payee/NewGuide/payment.htm for a description of certain payees who are authorized to collect a fee.

There are two kinds of payees:  

Individual representative payee - This could be someone that a beneficiary lives with or a family member or friend who does not live with the beneficiary. It could also be a lawyer, a legal guardian, or a volunteer for a government or non-profit agency. In most cases, individual payees provide our beneficiaries payee services without compensation. Individual payees are never authorized by SSA to charge fees, though some may receive a fee for the services performed as a legal guardian.

Organizational representative payee - This category includes social service agencies, institutions, an official of a state or local government agency or a financial organization. While most organizational payees may not collect a fee for providing payee services, those that meet special requirements may do so. These Fee for Service (FFS) payees must file a request and receive written authorization from SSA before they can collect a fee from the beneficiary for their services.

Note: Having power of attorney, being an authorized representative or having a joint bank account with the beneficiary is not the same thing as being a payee. These arrangements do not give you legal authority to negotiate and manage payments for someone receiving Social Security and/or SSI payments. You must apply for and be appointed as a payee by SSA.