Understanding Social Security Retroactive and Back Pay
The Social Security Administration (SSA) provides workers who have certain medical conditions with a valuable benefit. If you are unable to work at your job because of a medical condition, you may be entitled to receive monthly payments from the SSA. Unfortunately, the application process to get those benefits can be incredibly long. The SSA, however, does try to compensate you somewhat for these delays by offering you two different types of payments that could end up filling the gap. Read on to learn more about retroactive pay and back pay under the Social Security disability program.
Note that the sooner you apply, the better. As soon as you know that you can no longer work at your job, don't waste time in filling out your application. The date on your application will play a part in how much you will get in benefits, and is known in SSA parlance as the "look back" date.
Retroactive Pay
If you became disabled and unable to work at your job, but delayed getting your application for benefits for some time, you may be eligible for retroactive payments. This form of payment can go back to the date you claimed to become disabled and might provide you with compensation for that date going forward to your application date. You must prove the date you became unable to work by providing medical records and employment records.
Back Pay
Once you apply, the date of your application will stand as the point in time that the SSA will consider you eligible for back pay, if you are approved. Since the approval process can be so time-consuming, the SSA tries to compensate you for the time between your application date and the date you are approved for benefits, whether it be on your initial application or after an appeal hearing. Back pay is calculated using the same amount of monthly benefits as you will receive. The important fact that you should know about back pay, however, it that is will be paid to you in a single lump sum payment. If you decide to get legal help with your Social Security claim and have an attorney represent you at your appeal hearing, it is from this back pay lump sum payment that your attorney gets paid.
Waiting Period
Unfortunately, just when it seems that everything is going is smoothly and you are expecting to begin getting some financial help, you are faced with the specter of the 5-month waiting period. Whether you are talking about retroactive pay or back pay, everyone who gets approved for Social Security disability must undergo a mandatory 5-month waiting period, during which you will receive no payments and no payments accrue.
Contact a Social Security attorney for assistance with filing an appeal if you have been denied.