Wage Reporting

When a person receiving SSI and/or SSDI benefits from Social Security is working, it is required by Social Security that those wages be reported to them on a monthly basis.

How Social Security looks at the wages varies slightly depending on which program you are on. This is explained more below.

Supplemental Security Income (SSI) is a needs-based program for people who are disabled, blind or aged. The amount an eligible person can receive is based, in part, on other income. Generally, the more income available to the SSI recipient, the less the SSI payment will be. Reporting wages each month helps Social Security pay the correct amount of SSI and may prevent the SSI recipient from owing Social Security money, or allow Social Security to pay a higher amount. SSI is run on a retrospective accounting system which means your earnings will not affect your SSI check for 3 months. This means your August earnings will not be reflected in your SSI check until October.

Social Security Disability Insurance (SSDI) is not a needs-based program. Eligibility for this program is dependent on how many “credits” you have earned based on your past earnings. A person can earn up to four credits per year. How many credits you need in order to be eligible for SSDI is dependent on your age and disability onset. The amount of the monthly SSDI benefit check is based on your earnings record. When you are working and receiving SSDI benefits, even though the program is not needs-based, you must report your wages to Social Security each month. Social Security will determine if your earnings are at a certain level and whether or not you are due a check the following month. At this time, the SSDI program is all or nothing, your check will not gradually be reduced. You either receive a check or you do not receive a check. Also, your wages are counted when you earn them, not when you were paid.