Generally, Social Security pays the incentive payment to the first reporter to provide Social Security with timely information that leads to the suspension of a beneficiary's Title II social security benefit or a recipient's SSI payment.

If the individual is an SSI recipient, Social Security will suspend his/her SSI benefit once the individual remains in the facility for one full calendar month at public expense.  In order to receive the incentive payment, the reporter must provide Social Security with the first inmate report that would cause Social Security to suspend the SSI recipient's payment.

In many instances, after the court convicts an individual, the jail transfers the individual to a State penitentiary to serve his/her sentence. The State takes custody of the individual and will then report the conviction and confinement information to Social Security for this beneficiary. Social Security will pay an incentive payment for a timely conviction report when Social Security stops the beneficiary's Title II benefits.