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A representative payee is a person or organization authorized by the Social Security Administration (SSA) to cash and manage certain benefits checks -- Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) -- for a person deemed unable to do so.
Sometimes financial jargon is puzzling, and payee is one of those words that causes confusion. A payee is a person or organization that receives a payment. That payment can be in any form, including cash, a check, or an electronic transfer of funds. The payee receives the payment from the payer (or âpayorâ if you prefer), which is the person or organization that makes the payment. A common example of a payee is found in banking (on a check): the payee is the person or organization to whom the check is written. The payeeâs name is written on the line that says âPAY TO THE ORDER OF.â