The Importance of Back Pay for SSI & SSDI Recipients
When applying for Social Security Disability (SSD) benefits, you face a difficult situation. You’re unable to work because of your disability. Yet you have to wait on the Social Security Administration (SSA) to approve your claim before receiving financial support. Unfortunately, this can take several months.
Once the SSA approves your claim, there are rules in place that can further delay access to disability benefits. Due to such constraints, applicants can greatly benefit from Social Security Disability back payments.
What Is Back Pay for Social Security Disability?
“Back pay” refers to disability benefits that claimants would have received if they were immediately approved for SSD. This applies to people who file for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits.
Back pay covers the time between your application date and your approval date. Once the SSA approves your claim, they may owe you more than just future monthly disability payments if you’re eligible for back pay.
Back pay can also come in the form of retroactive payments. Retroactive pay for SSDI is money you can receive for the time between your Established Onset Date (EOD) and your filing date. Your EOD is your disability onset date, the same date you become eligible to receive disability benefits.
How Is the Amount of Back Pay Determined?
Once the Social Security Administration approves your disability benefits application, they will calculate your back pay. The amount of back pay you receive is based on the time between your filing date and the date you’re approved for benefits. For SSDI, there is a mandatory 5-month waiting period taken into account, as well.
For retroactive back pay, the time between your EOD and filing date determines the amount you’ll receive.
SSI & SSDI Back Pay Timelines
Even after being approved for benefits, it can take additional time for the SSA to distribute your back pay. How long it takes to receive back pay is unique to each individual’s claim and depends on various factors. This process can take anywhere from several weeks to a few months and sometimes longer.
If you have direct deposit set up with the SSA, you may receive your payment sooner. In most cases, however, claimants receive their back pay in a lump-sum payment via check through the mail.
The distribution of back pay also depends on whether an individual receives SSDI or SSI benefits. While SSDI back pay is paid in a lump sum, SSI back pay is issued in installments.
Retroactive Back Pay Restrictions
Unlike SSDI, SSI back pay rules are a little different in that you can’t receive retroactive benefits. If you do get SSI, you may only receive traditional back pay for the time between your filing date and claim approval date.
For SSDI claimants, retroactive benefits can cover a maximum of 12 months’ time. However, SSDI benefits are only payable after a 5-month waiting period from the date disability began. Consequently, to receive the full 12 months of retroactive pay for SSDI, your EOD must be at least 17 months prior to your application date.
There is no waiting period for SSI. Beneficiaries receive their first traditional SSI payment for the first full month after the date they applied for benefits.
Our Knowledgeable Social Security Lawyers Can Help
If you’re wondering how disability back pay works, schedule a free consultation with our experienced Knoxville Social Security disability attorneys. Not only can we help you understand your rights, but we can help establish a favorable EOD. Doing this correctly ensures you will be awarded all the back pay you are entitled to.
Find out if you’re eligible for back pay and get the legal support you need. Work with our dedicated and compassionate Social Security team at Miller Disability Law, PC. We will be happy to help expedite your back pay claim and answer any questions or concerns you may have. Contact us online to schedule a free case evaluation or call (865) 637-0515 now.
