Difference Between SSDI and SSI

The Social Security Administration (SSA) oversees two individual disability benefit programs. These programs are the Supplemental Security Income (SSI) and the Social Security Disability Insurance (SSDI). Both of these programs provide benefits based on disability but they are funded and administered differently. The Supplemental Security Income makes benefit payments according to the financial needs of the disabled individual. The Social Security Disability Insurance is based on the contributions made to Social Security through taxed income of prior work under the Social Security tax laws.

Do you or a loved one need information about the differences between SSDI and SSI? Contact a New Jersey Social Security Disability Lawyer at the Kazmierczak law office today and we will gladly explain the difference between SSDI and SSI!

The SSA manages the SSI program but the program is funded by U.S. Treasury general funds and not by Social Security taxes. SSI provides financial assistance to low income persons who are 65 years-of-age or older, blind, or disabled. SSI disability benefits are payable to adults or children that meet the living arrangement requirements, limited income margins, disability restrictions for work, or other eligibility requirements. The total monthly payment may vary up to the maximum federal benefit rate, which may be reduced by other sources of income and/or resources. However, there are certain income and other resources such as food stamps, shelter from private nonprofit organizations, and home energy assistance that the SSA will not consider when figuring out the amount of your benefits. New Jersey also offers state supplemental benefits that are administered by the SSA.

In order to be considered for SSI benefits you must be:

Age 65 or older
Blind
Disabled

SSDI is financed through the Federal Insurance Contributions Act tax (FICA). FICA is a payroll or employment tax that is imposed on employers, employees, and self-employed persons by the federal government to fund Social Security and Medicare. A worker becomes eligible for SSDI benefits by earning the necessary taxable work credits through the FICA insurance they pay to SSA. SSDI benefits are payable to blind, disabled workers, widow/widower, or adults that have been disabled since childhood. An adult child may qualify for benefits on his/her parent’s earnings record if he/she becomes disabled before the age 22. The amount of the monthly SSDI benefits are based on the amount the insured worker paid to Social Security.

There are two different earnings tests used by SSA to determine eligibility for SSDI:

Recent Work – A test based on your age at the time of your disability
Duration of Work – A test to show that you worked long enough to qualify for benefits

According to the Social Security Administration, the chances that a person will become disabled are probably greater than most of us realize. Studies by the SSA have shown that a 20-year-old worker has a 3 in 10 chance of becoming disabled before reaching retirement age.