Workers Compensation Payments and Social Security Disability: What You Need to Know

Workers compensation benefits are generally not deducted from Social Security Disability Insurance (SSDI) payments, but they can reduce the amount of Supplemental Security Income (SSI) you receive because SSI is a needs‑based program.

How SSDI Handles Workers Compensation

SSDI is an entitlement program based on your work record. Since it is not means‑tested, receiving workers compensation does not affect the SSDI benefit amount.

How SSI Handles Workers Compensation

SSI is funded by general tax revenues and is limited to individuals with low income and resources. Any workers compensation you receive is counted as income, and the SSI payment is reduced dollar‑for‑dollar up to the full benefit amount.

Key Factors That Influence Offsets

• Type of workers compensation (temporary vs. permanent)
• Amount of the workers compensation benefit
• Your overall income and resource levels

Reporting Requirements

You must report any workers compensation payments to the Social Security Administration promptly. Failure to do so can result in overpayments that must be repaid.

When Offsets May Not Apply

If your workers compensation benefits are below the SSI income limit or if you are only receiving SSDI, the offset may be minimal or nonexistent.