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<h3>Fee-for-Service Payees</h3>
<p>This is an organizational payee who is authorized by SSA to collect a fee for the services they provide to beneficiaries.</p>
<h4>Qualifications</h4>
<p>To qualify as fee-for-service, your organization must:</p>
<ul>
<li> Be a community based, nonprofit social service agency or organization which is bonded and licensed (Providing licensing is available) in the state in which you serve as a payee; or</li>
<li>Be a state or local government agency with responsibility for income maintenance, social services, health care, or fiduciary duties. </li>
</ul>
<p>In addition, a fee-for-service organization must:</p>
<ul>
<li> Regularly serve as a payee for at least five beneficiaries; and</li>
<li>Not be a creditor of the beneficiary; and</li>
<li>Formally apply and be authorized by SSA to collect a fee. </li>
</ul>
<h4>Fees</h4>
<p>Effective December 2023 (the increase may be collected from the January benefit check), the monthly fee for payee services is the <em><strong>lesser</strong></em> of:</p>
<ul>
<li>10% of the beneficiary monthly benefit amount or</li>
<li>$54.00. </li>
</ul>
<p>For individuals with a Drug and Alcohol Abuse (DAA) condition, the monthly fee for payee services is the <em><strong>lesser</strong></em> of:</p>
<ul>
<li>10% of the monthly benefit amount or</li>
<li>$100.00 (<em><strong>SSA must authorize the higher fee</strong></em>).</li>
</ul>
<p>A fee <em><strong>may not</strong></em> be collected if <em><strong>any</strong></em> of the following apply:</p>
<ul>
<li>The beneficiary does not receive a payment in the month;</li>
<li>Your organization receives compensation, including guardianship fees, for performing representative payee services from another source;</li>
<li>Your organization did not provide payee services for the month;</li>
<li>SSA has determined that you have misused a beneficiary&rsquo;s funds; or</li>
<li>You serve less than five beneficiaries.</li>
<li>The benefit amount does not cover the beneficiary’s living expenses for that month.</li>
</ul>
<p>Current payments may not be used to collect fees for past months. Nor can a beneficiary&rsquo;s conserved funds or personal needs funds be used to pay fees for payee services. </p>
<p><strong>NOTE:</strong> One exception allows an organization to collect a fee from payment of retroactive amounts. The exception applies when a retroactive payment is made for a prior period of nonpayment or incorrect payment and the organization:</p>
<ul>
<li>Is approved to collect a fee for the months for which the payment is made;</li>
<li> Did not collect a fee or collected a reduced fee;</li>
<li>Provided representative payee services for the month for which payment is made; and</li>
<li>Is the representative payee of record when the retroactive payment is received. </li>
</ul>
<p>&nbsp;</p>
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