Everything you need to know about Back Pay if you applied for SSDI or SSI
People who apply for benefits such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) are generally due to a higher amount the first time they receive the benefit because of something known in the disability insurance industry as Back Pay.
It is essential that if you applied for SSDI or SSI, you are aware of what Back Pay means and how it is calculated to make sure you received your benefit as it should have been in your case. Although the details are discussed when applying for these benefits, it's always good to get back to refresh the basics.
Here are the Back Pay basics for you to keep handy at all times:
What is Back Pay?
Back Pay is a monetary award made for the time between the time you apply for an SSDI or SSI benefit and the time your application is approved.
How much Back Pay do I get the first time I receive my benefit?
This depends on several factors, such as the type of disability you indicated on the application you made and the base benefits you were awarded in the first place. Of course, the time it took for your application to be approved also plays a significant role in the amount you will receive. This means that the longer you waited for your application to be approved, the higher the amount you will receive in your Back Pay.
How does Back Pay work with SSDI benefit programs?
The first thing to keep in mind is that SSDI benefit programs generally have an approval period of up to five months. This means that you will not receive any Back Pay compensation if your application is approved within that time.
On the other hand, if your application takes longer than five months to be approved, you will be entitled to receive your Back Pay calculated on the months that elapsed after the initial five months.
For example, if your application took a total of nine months to be approved, you will receive a Back Pay calculated in four months, instead of the nine months the entire process took.
Your Back Pay will generally be received shortly after your application is approved, and the method of payment is a lump sum.
How do Back Pays work with SSI benefits?
Unlike the previous case, SSI programs are based on a need criterion. So if your application is approved, your benefit would begin with the first full calendar month after you are deemed disabled.
In this case, you will also receive your back pay when your application is approved; the difference is that in the case of SSI programs, the payment is made on an installment basis.
It is crucial that before you apply, you consult with an expert to find out if your condition can be considered a disability by the SSA, so it is recommended that you speak with one of our team members. You can contact us to make your inquiries or through our website.Disability Back Pay