What does Back Pay mean?
Back pay is paid based on the date the claimant became unable to perform substantial gainful activity and their established onset date for their disability, but due to the backlog of processing for both Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) claims many claimants will be eligible for back pay.
The amount of back pay a claimant is eligible to receive will vary, depending on whether they qualify for SSI or SSDI benefits. For instance, SSI back pay is paid retroactively back to the date the SSI claimant filed their Supplemental Security Income application. SSDI benefits, however, are paid back to the claimant's established onset date (EOD) of disability, less the five month waiting period. Consider, however, if your established onset date is more than 12 months before the date you filed your SSDI application back pay will not be allowed for those additional months.
The SSA will pay back pay in one lump sum for SSDI or in installments for SSI. SSI claimants will receive installments if the SSA determines a lump sum payment will increase their resource and income level above the federally allowable limit.
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Category: Employment Law