Does the Social Security Administration withhold past-due benefits to directly pay all fees for representation?
No. Currently, the law authorizes Social Security to withhold 25 percent of a claimant's Title II (Social Security) past due benefits for direct payment of all or part of an attorney representative's fee. If Social Security authorizes a fee greater than the amount of past-due benefits withheld, the claimant is responsible for paying the difference to the attorney.
The law does not allow Social Security to withhold past-due Supplemental Security Income (SSI) benefits to pay fees for representation. Nor is Social Security authorized to withhold any of a claimant's past due, Social Security or SSI benefits for direct payment to a non-attorney representative.
The Social Security Protection Act of 2004 changes some of these withholding and direct fee payment provisions. For information about these changes, which became effective in 2005, go to the Direct Payment of a Fee to a Representative page.