Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) are two programs offered by the Social Security Administration (SSA) that are available to people with disabilities or a medical condition that keeps them from being able to work. Those eligible for disability payments may be curious about which pays more.
SSDI is based on the recipient’s work history and earnings, while Supplemental Security Income is a needs-based program that assists people with limited income and resources, SSDI payments are typically higher than SSI payments.
Payroll taxes paid by SSDI beneficiaries into the Social Security system entitle them to benefits based on their prior wages.
Does SSI Pay More than SSDI?
Generally, SSDI pays more than SSI. According to data from 2020, the typical SSDI monthly benefit is $1,258. The typical monthly SSI benefit is $575. With SSDI, recipients with disabilities usually receive a higher benefit than with SSI. Some states will also provide supplemental SSI benefits.
When Do You Receive SSI Payments?
Benefits for SSI and SSDI are paid at various intervals by the SSA. If you qualify for both benefits, knowing when you will receive your payments is important. Your SSI benefits will be paid on the first of every month.
In the month following your application’s approval, the first payment will begin. You will receive your benefits the business day before the first of the month if it falls on a weekend or holiday. Federal law requires that all income benefits must be made electronically. There are two options for electronic payment:
- Direct deposit
- Loading funds onto a debit card
The SSA requests that you hold off contacting them for overdue mail payments until the fourth business day.
When Do You Receive SSDI Payments?
Before you can start receiving SSDI benefit payments, there is a waiting period. To receive benefits, you must have been disabled for five months. Your birth date determines the SSDI payment date each month.
- Your benefits will be paid on the second Wednesday if your birthday falls between the 1st and 10th of the month.
- Your benefits will be paid on the third Wednesday if your birthday falls between the 11th and 20th of the month.
- Your benefits will be paid on the fourth Wednesday if your birthday falls between the 21st and the last day of the month.
Each monthly payment will cover the benefits of the previous month. For instance, you will receive your January benefits in February.
When requesting disability benefits, many people encounter difficulties. Even if you know you qualify, it can be challenging to be approved for benefits. To seek assistance with your application or an appeal, speak with a Social Security Disability attorney or contact a SSA advocate to help you navigate the system.
Back Payments For Disability Benefits
You might get back payments once the SSA grants you SSDI or SSI benefits. If your disability began before you received benefits, you could qualify for back compensation. Your back pay will vary based on the following:
- When your disability first prevented you from working or the established onset date (EOD)
- The date you submitted a benefit application
What Is The Difference Between SSI And SSDI?
For individuals in need, SSI and SSDI both offer benefits in the form of monthly monetary payments. However, the requirements vary depending on the program. The Social Security Administration reports that SSI provides benefits for disabilities to:
- Adults with disabilities, low income, and few assets
- Children with disabilities and few resources
- Adults 65 years of age and older who are financially qualified (even if they are not disabled)
SSI recipients would struggle to cover their basic expenses without assistance. Disability and financial need are factors in receiving SSI benefits. If you apply for SSI, the SSA will assess your assets and earned income. It will also check whether you have a health issue lasting at least a year.
Only individuals who have paid social security taxes while employed are eligible for SSDI. You presumably made social security contributions if you had a job or earned money via self-employment. You might be qualified for SSDI benefits if you have sufficient work credits from contributing to taxes.
To be eligible for SSDI, just like SSI, you must have a disabling condition. The amount that SSI or SSDI pays does not depend on how severe your condition is.
Medicaid vs. Medicare
With SSI and SSDI, there are other benefits besides income. Most recipients of SSI are automatically eligible for Medicaid. Medicaid is a program that offers health insurance. Medicare might be available to SSDI recipients. However, they have to wait two years before they can receive benefits. Medicare offers medical insurance for standard hospital procedures.
Back Payments For SSDI And SSI
When the SSA approves a person’s SSDI or SSI application, they can be eligible for retroactive payments, referred to as back payments. Back payments cover the time between the individual’s disability’s onset and the day their application for benefits was approved.
The date the disability started and the individual’s application for benefits are two of the many variables that affect the back payment amount. Because of the five-month waiting period for SSDI benefits, back payments are calculated starting after the waiting period. There is also a limit of 12 months of back pay prior to the date of your application. Back pay for SSDI is usually paid in a lump sum.
Back payments for SSI are normally made up to three months before the application date. Back pay for SSI is usually paid in two to three installments. The SSA will send a statement of benefits that details the amount paid and any taxes deducted, and it is important to remember that previous payments may be taxed.
Getting Help With SSDI Or SSI Applications
Applying for SSDI or SSI benefits can be difficult and confusing. Many applications are rejected or delayed because of errors or missing paperwork. Fortunately, tools are available to guide candidates through the process.
Working with a Social Security Disability attorney or an advocate is one option. They specialize in assisting people with disabilities with benefit applications and claims. If the application is denied, they can assist with an appeal and hearing.
Additionally, they can offer legal guidance on any other issues about disability benefits, such as eligibility restrictions.
The SSA itself is a resource. On its website, the SSA provides information about eligibility requirements, application processes, and frequently asked questions. Additionally, the SSA has regional offices where applicants can meet with staff members and receive assistance with their applications.
Conclusion
With their different criteria, including the fact that SSDI is based on a person’s work history and wages, whereas SSI is a need-based program, SSDI payouts are often larger than SSI payments.
Due to their payroll tax contributions to the social security system, SSDI claimants may qualify for higher benefits based on their prior wages.
Additionally, those who receive SSI are eligible for Medicaid upon approval, and those who receive SSDI are eligible for Medicare after two years. Knowing the distinctions between SSI and SSDI, the application procedure, and payment schedules can assist people with disabilities in choosing which benefits to apply for and when.
