A representative payee is defined as a third party payee receiving income on behalf of a beneficiary. The most common representative payments are those made in grant programs, such as SSI, RSDI, and Temporary Assistance, to payees where beneficiaries are unable to manage the payment. A beneficiary is defined as a person for whom the income is to benefit. The income is coded as the type of income it is (SSI, RSDI, etc.).
The portion of the money that the representative payee uses for himself/herself is considered income to the representative payee’s EU and not to the beneficiary’s EU (Type UI – Source RH for the representative payee’s EU). Do not show this part of the income to the beneficiary’s EU. If the payee is a member of the beneficiary’s EU, count the payment once to the EU.
A qualified organization (a community based nonprofit social service agency bonded or licensed in the State it serves) acting as a representative payee for an RSDI or SSI recipient may collect a fee for handling the recipient’s benefits. This fee is not considered income to the recipient and is excluded.
NOTE: If the intended beneficiaries of a single payment are not both EU members, exclude any identifiable portion of the payment intended and used for the care and maintenance of the non-EU member. If the non-EU member’s portion cannot be readily identified, evenly prorate the payment among intended beneficiaries. Apply the exclusion to the non-EU member’s pro rata share or the amount actually used for the non-EU member’s care and maintenance, whichever is less.