How SSDI Back Pay Affects Your Social Security Claim

If you are afflicted by a medical condition that impairs your ability to work at a job, you may be interested in applying for Social Security Disability Insurance (SSDI). Along with monthly benefits, SSDI recipients may also have some back pay coming to them. To find out more about this type of SSDI payment, read on. 

What is Back Pay?

Back pay is the retroactive payment that an SSDI recipient receives to compensate them for the time period that they were unable to work due to their disability and waiting for their claim to be approved. This payment covers the gap in time between when the individual became disabled and the date that their SSDI application was approved. As you might have heard, the Social Security Administration (SSA) can take several months to review and approve or disapprove an application for benefits.

Back pay can help recipients recover benefits that would have been coming to them had they been approved in a more timely manner. If an individual is approved for SSDI benefits, they may be entitled to a lump-sum payment for the back pay owed to them from the time they became disabled to the date of their approval. This back pay can be a significant amount of money, depending on how long it took for the application to be approved.

Back Pay and Legal Help

When a claimant is turned down for benefits, they are entitled to an appeal process. However, SSDI rules can be difficult and complex. To make the most of their appeal, it's a good idea to speak to a Social Security lawyer about their denial and upcoming appeal meeting. 

If a claimant hires a social security lawyer to help them with their SSDI claim, the lawyer's fees are typically paid out of the individual's back pay. Social Security regulations govern the fees that an attorney may charge, and it is typically limited to 25% of the retroactive benefits awarded to the claimant, up to a maximum of $7,200. This means that if a claimant is awarded $20,000 in back pay, their lawyer's fee cannot exceed $5,000.

Get the legal help you need by utilizing the contingency fee arrangements offered by Social Security lawyers. They can help you prepare for your appeal hearings and gather the evidence needed to prove you are entitled to SSDI benefits. They will also stand by your side at the appeal hearing and work to explain your need for benefits. Speak to a social security disability lawyer today to learn more.