How One Missed Paycheck Can Trigger a Benefits Overpayment

If you’re receiving SSDI, a single gap in income — like a missed or delayed paycheck — can confuse the Social Security Administration (SSA) and lead to one of the most stressful things a disabled person can face:

An overpayment.

Even if you’re eligible, even if the income was reported, even if it was just a glitch — SSA can say they paid you too much and demand you pay it back. Here’s how it happens — and how to protect yourself.

What Is an SSDI Overpayment?

An overpayment happens when SSA sends you more money than they think you were eligible for. The most common cause? Earnings.

If you go over the Substantial Gainful Activity (SGA) limit or forget to report income, SSA may later decide you weren’t eligible for some or all of your SSDI payments during that time — and send you a bill.

But here’s the catch: overpayments can also happen when you miss a paycheck.

How a Gap in Income Can Backfire

Let’s say you’re working part-time and reporting your income. Then you miss a paycheck one month — maybe your hours were cut or your employer paid late.

SSA receives your wage data and sees a dip in earnings. Months later, you start earning more again. But SSA’s systems aren’t fast — and often rely on lagging data. So what do they do?

They keep paying you benefits like nothing changed. Then when the updated data arrives, they recalculate — and say you owe money.

Why Overpayments Are So Dangerous

SSA overpayments can be:

• Thousands of dollars

• Difficult to appeal

• Reported to credit bureaus

• Collected from future checks, tax refunds, or even wages

Worse, they can shake your confidence in using the very programs you rely on.

How to Avoid the Risk

Avoiding overpayments isn’t always about earning less — it’s about tracking accurately.

Here’s what helps:

• Monitor income each month to stay below SSA thresholds

• Save copies of all paystubs and wages

• Report changes in earnings as soon as they happen

• Don’t assume SSA will catch errors or missing pay automatically

• Track trial work months, especially if you’re near the 9-month limit

How Purple Helps

Purple gives you real-time tools to help you avoid overpayments and keep benefits secure.

With Purple, you can:

• Track your income against SSA limits and SGA thresholds

• Upload paystubs to keep a running record of your wages

• Store SSA letters, reports, and documentation in one place

• Get alerts if income appears to spike or drop unexpectedly

• Receive Social Security disability benefits, which may arrive up to 4 days early¹

• Get other direct deposits, like paychecks, which may arrive up to 2 days early¹

Get started today at withpurple.com

Purple is a financial technology company, not a bank. Banking services are provided by OMB Bank, Member FDIC. The Purple Mastercard® Debit Card is issued by OMB Bank, Member FDIC, pursuant to license from Mastercard.

¹ Early access is not guaranteed, depends on payer timing, and standard processing times may apply. We generally make funds available on the day we receive the payment file, which may be up to 4 days early for government benefits like SSI or SSDI, and up to 2 days early for other deposits. Early access is available at no additional cost.