Guide for Organizational Representative Payees

Frequently asked questions

How often do I have to report to SSA on how funds have been used?

We will send you a "Representative Payee Report" periodically, usually once a year. The report is simple to complete if you keep clear records of payments received and how the money is spent and/or saved.

What type of bank account should I set up?

The bank account must be titled so that it is clear that the money belongs to the beneficiary. A checking account may be best because you will have cancelled checks and/or statements that show how the funds were spent. However, some beneficiaries cannot maintain high enough balances to avoid service charges. Cashier's checks and money orders also have charges associated with them. Make every effort to set up an account that earns interest, minimizes fees and enables you to keep clear records. If you are serving as a representative payee for a large number of beneficiaries, you may request SSA’s approval to establish a collective account.

How do I set up a collective account?

If you are serving as a representative payee for a large number of beneficiaries, you may want to set up a collective account. To do so, you should contact SSA for guidance. Your local Social Security office must approve your use of a collective account and is responsible for ensuring that the collective account is set up in accordance with SSA’s policies and procedures. You will need to set up an accounting system in order to maintain accurate records for each beneficiary.

The beneficiary for whom I am a payee moves around a lot. Since you have my mailing address, why do I have to notify you every time he moves?

We know it is difficult to keep track of the whereabouts of some beneficiaries, but the law requires SSA to keep a current file of names and addresses for payees and beneficiaries. For SSI beneficiaries, moving can mean a change of living arrangements and a change in his or her SSI payment. In addition, SSA sometimes needs to send notices not only to you, but also to the beneficiary. You can call SSA toll free at 800-772-1213 , visit your local Social Security office or notify SSA by mail to report a change of mailing or residence address.

I am a representative payee for a volunteer agency. One resident has expressed an interest in going on a vacation; however, the resident cannot go without close care and supervision. A staff member would accompany the resident and provide the necessary oversight and care. Can the beneficiary’s conserved funds be used to pay for the staff member’s travel expenses for transportation, food and lodging?

Any use of the beneficiary's funds must show a correlation between the expense incurred and a direct benefit to the beneficiary. The expense must be reasonable in relation to the beneficiary's funds and the beneficiary must not have unmet current or foreseeable needs. You must obtain SSA's approval before using conserved funds for this purpose. SSA’s decision to approve or deny your request is made on a case-by-case basis. If you have questions about the appropriateness of an expense, contact your local SSA office for assistance.

Can I be Reimbursed From the Beneficiary’s Funds if I incur an Expense On Behalf of the Beneficiary?

You may be reimbursed for reasonable actual out-of-pocket expenses you incurred on behalf of the beneficiary. For example the cost of transporting the beneficiary to a doctor’s appointment (such as cab fare, mileage and tolls); postage to pay the beneficiary’s bills, and fees for money orders is considered out-of-pocket expenses. The amount of reimbursement must correspond with the actual expense you incurred for the beneficiary. You must keep records of your out-of-pocket expenses.

Note: If you are a fee for service payee, the cost of postage is not reimbursable.

Payees are not permitted to be reimbursed from the beneficiary’s funds for any expenses that are considered overhead. For example, the costs associated with utilities, rent, office equipment and supplies cannot be collected from beneficiaries.

The beneficiary for whom I am representative payee wants to spend money on things that I think are unwise (alcohol, cigarettes, lottery tickets, candy, etc.). What is my responsibility?

Your main obligation is to ensure that the current needs (food, clothing and housing) of the beneficiary are met. Once that has been done, the beneficiary has the right to have some discretionary spending money, even if you do not approve of all of his or her choices. If the beneficiary has a drug or alcohol abuse problem, you may want to give the beneficiary only small amounts of spending money, or purchase food and other personal items to give to the beneficiary, rather than cash.

When I became representative payee, I found out that the beneficiary has many outstanding debts. What is my obligation concerning those debts?

Money that you receive for the beneficiary, whether monthly or past-due payments, must be used to meet current needs such as housing, food, utilities, and medical and dental expenses before funds may be spent on outstanding debts. Social Security and SSI payments are exempt from seizure by creditors. If failure to pay an old debt could result in negative consequences like homelessness, you should attempt to settle the debts.

You must first obtain SSA's approval before using the beneficiary's funds to pay the debt. If you have any question regarding this requirement, contact your local Social Security office.