What Are Your Fees Social Security Representation?

1. If approved at the initial filing then representation is billed at 25% or $2650.00 of the back pay, which ever is less, plus out pocket expenses.

2. If approved at the reconsideration level, which is rarely used and will soon be eliminated nationwide,  then representation is billed at 25% or $3650.00 of the back pay, which ever is less, plus out of pocket expenses.

3. If approved at the Administrative hearing level then representation is billed at 25% or $5300.00 of back pay, which ever is less, plus out of pockets expenses.

WHAT IS BACK PAY?

Since Social Security is a slow process decisions that result in payment often take months and sometime years.  As a result when a favorable decision is finally issued you are paid retroactive pay that covers those months while you were waiting for a favorable decision. 

Each program handles back payments differently.  For Supplemental Security Income (SSI) benefits are paid from 1st day of the month after you called.  For example, If you called the Social Security Administration for an appointment on May 16th then your benefits would be payable starting June 1st.   SSI is limited as to how much it pays each month depending on what financial resources that you have, support from others, etc.  Currently the maximum payment for 2005 for SSI benefits is $572.00 a month. 

Lets say that you call Social Security for an appointment on July 16th and talk by telephone or in person with a social security representative on August 10th.  You receive an approval for SSI benefits ONLY on December 10th of the same year.  After some processing time you get your first monthly check in January.  However, you applied back on July 16th.  So you will also get a another check for "back pay" covering the period of August 1st to December 31 which equals, assuming no reductions, to $2860.00.  Of that amount I would collect 25% or $715.00 plus any out of pocket expenses.

Now lets use another example except will will only concern ourselves with Social Security Disability Insurance (SSDI) Benefits.  Lets say that you call for your appointment on July 16th and receive an approval on June  of the following  year.  Now here the rules are different.  SSDI does not care about your financial resources or income from other people etc.  The amount you receive are based on the amounts you have been taxed by social security over the years you have worked.  Lets say your monthly benefit is $850.00 per month.  However, payment does not start until you have waited FIVE FULL months.  Therefore, no payment is made for July and July does not count since it is part of a month.  So your waiting months are August, September, October, November, and December.  Therefore, your back pay covers the months of January to June which equals 6 months X $850.00=$5100.  Of that I receive 25%plus expenses or $1275.00.

There are other examples but the purpose of this section was to give you a general idea of back pay.  There are many other factors that that affect back pay but these are more unique and need to be reviewed on a case by case basis.