The fee for representation on a social security disability or SSI disability case is currently set at a maximum of $6000. How is the fee for representation paid to a disability attorney or a social security disability non-attorney claimant's representative?
If you choose to be represented on your case, you will sign an SSA-1696 which will be submitted to the social security administration. This is the form designating a specific individual as your representative who, as was indicated, may be an attorney or a non-attorney. You will also sign a fee agreement.
All fee agreements must be approved by the social security administration. But not all fee agreements are alike since some disability representatives will charge for certain incidental costs while other representatives will not (you should always read your fee agreement before signing it).
All fee agreements, though, are alike in this sense: they specify what will be paid to the representative if and only if the case is won.
Basically, it works like this. If the case is won, the representative is entitled to one-fourth of the claiman't back pay. However, there is a cap, or maximum limit, on the fee that a representative can be paid. And that maximum is $6000.
Therefore, if a claimant receives $20,000 in disability back pay, the representative will be entitled to receive $5000, which is one-fourth of the back pay. If a claimant receives $24,000 in disability back pay, the representative will be entitled to receive $6000, which is one-fourth of the back pay as well. But, if a claimant receives, for example, $40,000 in disability back pay, the representative will still receive only $6000 because this is the maximum fee that can be paid on any case, regardless of the total back pay that a claimant is entitled tor receive.
When is the fee for representation paid? After a case is won and only then. How is the fee paid to the representative? The social security administration will actually take care of the fee payment if the representative is a disability attorney attorney or a non-attorney claimant's representative who is eligible for fee withholding (meaning that SSA will send the fee payment amount, though this amount will be derived from the claimant's back pay).
