User Fee Up To $117 In 2024

     The user fee, which amounts to a tax, on attorneys who represent Social Security claimants will be $117 per case for 2024.

More COLA Numbers

     Social Security has published its complete Cost Of Living Adjustments. There's more than individual COLA adjustments to be computed. Here's some key numbers for 2023:

• Attorney user fee: $113
• FICA wage base: $160,200
• Quarter of coverage amount: $1,640
• Substantial gainful activity amount (non-blind): $1,470
• Trial work period threshold: $1,050
  

Attorney User Fee Goes To $98 Beginning In December

      Social Security earlier announced the 1.3% COLA (Cost of Living Adjustment) for benefits for 2021. Tomorrow the agency will publish a more complete notice about all of the COLA adjustments in the Federal Register tomorrow. Perhaps the item on that list that will attract the most attention, at least from one group, is the increase in the maximum user fee charged to attorneys and others who represent claimants before the agency. That amount goes up to $98 beginning in December. The user fee is deducted from the fees that the attorneys receive. 

     Of course, no adjustment was made in the maximum fee that attorneys may charge their clients under the fee agreement process. My understanding of Social Security's position on that is that they will consider raising that amount once it is reliably reported to them that representation has disappeared. We may be in a situation comparable to that which once existed for representation of veterans. In 1864 Congress passed a $10 cap on attorney fees for attorney representation in veterans benefits matters. That may have been reasonable at the time. However, no adjustment was made in that cap for 120 years! That cap protected veterans so well that attorney representation in veterans benefits cases disappeared apart from pro bono representation. I imagine that there are those at Social Security who would be happy to see the same thing happen at Social Security.

User Fee Goes Up

     The Social Security Administration has posted the official list of cost of living and other adjustments for 2020.  Of interest to attorneys and others who represent claimants is the fact that the cap on the user fee goes up to $97 next year. Of course, there will be no increase in the cap that attorneys may charge.

     I’m reminded of what happened with attorney fees for representing claimants for VA benefits. That fee was capped at $10 in 1864 and stayed at that level until 1988. Of course, it didn’t take long for all attorney representation to cease at VA. There may be some who envision such a future for Social Security.

What A Surprise

     The user fee -- really a tax -- on attorneys and others who receive direct payment of fees for representing Social Security claimants will remain at 6.3% in 2018.

User Fee Cap To $95 In 2019

     The cap on the user fee charged to attorneys and others who receive direct payment of fees coming out of the back benefits of the claimants they represent will be $95 in 2019. This is because of a cost of living adjustment. There is no cost of living adjustment on the maximum fee that may be paid. This means that because the cost of living has gone up my attorney fees are going down. Does this make sense to you?

User Fee Remains At 6.3%; Cap Goes Up To $93

     The "user fee" that attorneys have to pay on fees withheld and paid by the Social Security Administration remains at 6.3% for 2018. The "user fee" might more properly be called an excise tax. The cap on this excise tax will be $93 per case in 2018. Basically, because the cost of living goes up each year, net attorney fees have to go down. If that doesn't sound right, it's because you're understanding the situation. Of course, the cap on the total fee an attorney can receive per case in the vast majority of cases remains unchanged at $6,000. Attorneys who represent Social Security claimants lose each year due to inflation.

     If you think we're just a bunch of overpaid whiners, think about this. The Social Security Administration employs thousands of attorneys. Virtually none of them leave their government jobs to enter private practice representing Social Security claimants. It's probably less than 10 per year; maybe way less. I'm talking about a fraction of 1% of the total number of attorneys working for the agency. If private practice were so lucrative, wouldn't you think that there would be a regular flow out into private practice? There are plenty of challenges and satisfactions in being an attorney working for the federal government but wouldn't you think that a significant number of those attorneys would crave the challenges and satisfactions of hanging out a shingle and representing individual clients? Isn't that why most attorneys went to law school in the first place?

Attorney User Fee Remains At 6.3% -- How About Liens Instead?

     The fee paid by attorneys and others who receive direct payment of fees for representing Social Security claimants will remain at 6.3% of the fee in 2017 subject to a $91 cap per case. Social Security says this is their actual costs. Those of us who represent Social Security claimants feel this is absurd, that the agency's true costs are vastly less, and that the fee is nothing more than a thinly disguised tax.

     By the way, whenever I post about fees, I get the response that "real attorneys" collect their fees directly from their clients. That's bunk. There are three basic ways that attorneys collect fees. One is to collect the entire fee up front. A second is to bill clients on a pay as you go basis. This works only when you're representing corporations or wealthy individuals. If the client stops paying, the attorney withdraws from the case. Neither requiring payment up front or on a pay as you go basis is practical in Social Security cases because the claimants are usually too poor. The third way is contingent fees. The attorney takes a portion of the settlement or award if the client ultimately receives one. In such cases, the attorney has a lien on the settlement or award. The client cannot avoid paying up. However, the Social Security Act prohibits most liens on benefits. Those who would want to repeal attorney fee withholding without allowing an attorney a lien on back benefits aren't trying to make attorneys collect their fees like "real attorneys." Those "real attorneys" who represent claimants on a contingent fee basis have a lien giving them an assurance of receiving a fee. If you want to repeal withholding but give me the same lien as "real attorneys" have when they represent clients on a contingent fee basis, I'm with you. How about it? Also, by the way, I'm not aware of any other situation where attorneys have to pay a fee for their lien on a settlement or award.

User Fee To Stay At 6.3%

     The user fee charged attorneys and others who qualify for withholding of fees from the past due benefits of the claimants they represent will remain at 6.3% for 2016. Social Security swears that it costs more than this to compute and authorize a fee but attorneys have always been deeply skeptical that it really costs this much.

Now If They Could Do An Honest Recalculation Of The Attorney User Fee ...

     A notice from Social Security in today's Federal Register:

We provide fee-based Social Security number (SSN) verification services to enrolled private businesses and government agencies who obtain a valid, signed consent form from the Social Security number holder. ...

To use CBSV [Consent Based Social Security Number Verification], interested parties must pay a one-time non-refundable enrollment fee of $5,000. Currently, users also pay a fee of $3.10 per SSN verification transaction in advance of services. We agreed to calculate our costs periodically for providing CBSV services and adjust the fees as needed. ...

Based on the most recent cost analysis, we will adjust the fiscal year 2016 fee to $1.40 per SSN verification transaction. New customers will still be responsible for the one-time $5,000 enrollment fee.

What Would You Do?

     Back in May we received a fee of $5,911 on a client. That's what the "maximum fee" of $6,000 comes to after the "user fee." On November 20, we received a fee of $65.86. I sent the $65.86 back to the Social Security field office since it was in excess of what we are supposed to receive. Today, I received another check for $65.86 in the case.

     I could send the money back to Social Security but they may reissue the check to me once again. I could send the money to my client since it's almost certainly supposed to go to him but later Social Security may declare me overpaid by $65.86 and they won't care that I sent the money directly to the client. As far as they're concerned, it's always their money that's been overpaid and a direct payment to the client doesn't resolve the overpayment. I could tear up the check but the money really should go to the client. I could spend a lot of time on the phone trying to convince Social Security to take the money back from me and reissue it to my client but it's only $65.86 and it may not matter how much time we spend on the phone about this.

     What would you do?

Slowdown In Processing Claimants Onto Benefits

     Social Security has issued updated numbers on payments of fees to attorneys and some others for representing Social Security claimants. These fees are withheld and paid by Social Security but come out of the back benefits of the claimants involved. The attorneys and others who have their fees withheld pay a user fee for this privilege. Since these fees are usually paid at the same time that the claimant is paid, these numbers show how quickly or slowly Social Security is able to get claimants paid after a favorable determination on their claims.

Month/Year	Volume	Amount
Jan-13	32,663	$96,690,734.65
Feb-13	35,508	$102,242,540.93
Mar-13	45,189	$130,690,281.94
Apr-13	33,178	$92,566,832.32
May-13	42,841	$122,781,135.03
June-13	33,954	$97,627,420.68
July-13	35,221	$103,494,644.97
Aug-13	46,695	$129,774,228.90
Sept-13	33,295	$93,251,401.56
Oct-13	31,811	$87,109297.64
Nov-13	35,001	$98,454,659.66

User Fee Capped At $89 In 2014

     The user fee cap will be $89 in 2014. This is the limit on the amount that Social Security can charge attorneys and some others for withholding their fee from and the past due benefits of clients that have represented before the Social Security Administration. It's the amount charged in most cases. It's a simple one-quarter computation. By contrast, payroll companies charge $.80 to $2.00 to perform the far more complicated calculations needed to issue a payroll check.

Fee Payment Numbers

     Social Security has released updated numbers on payments of fees to attorneys and others for representing Social Security claimants. These payments come out of the past due benefits of the claimants involved. A portion of the fees is withheld as a user fee to reimburse Social Security for the paperwork involved. Generally, the attorney is paid at the same time as the claimant involved. These numbers give some idea of how quickly or slowly that Social Security is able to pay claimants after a favorable decision.

Month/Year	Volume	Amount
Jan-12	29,926	89,749,312.99
Feb-12	43,946	134,207,416.10
Mar-12	47,376	139,571,577.57
Apr-12	38,239	113,225,483.07
May-12	37,648	112,446,283.39
June-12	43,816	128,559,225.66
July-12	33,342	97,458,955.82
Aug-12	41,441	119,484,061.59
Sept-12	38,393	115,676,630.23
Oct-12	29,646	84,612,068.75
Nov-12	37,384	110,226,459.65

User Fee Cap To Be $88 Per Case In 2013

     In today's Federal Register -- yes, they were able to get it out -- Social Security made its official announcement on cost of living adjustments. This included the news that the cap on the user fee paid by attorneys and others who represent Social Security claimants will be $88 in 2013. This is the fee paid in most cases by those who represent Social Security claimants for Social Security's costs in computing and paying the fee. It amounts to a tax on those who represent Social Security claimants.

User Fee Stays At 6.3%

     The user fee imposed on those who receive direct payment of fees for representing Social Security claimants will remain at 6.3% in 2012.

Attorney User Fee Remains At 6.3%

Social Security has announced that the user fee charged for withholding and paying fees to attorneys and some others for representing Social Security claimants will remain at 6.3

5 in 2011.

Attorney User Fee To Remain At 6.3% In 2010

Attorneys and others who receive direct payment from the Social Security Administration of fees for representing claimants must pay a user fee. The user fee has been 6.3% for years but Social Security must determine on a yearly basis whether this percent should be reduced. Social Security will publish a notice in the Federal Register tomorrow saying that the user fee will stay at 6.3% in 2010.

User Fee To Remain At $83 In 2010

Social Security will publish a notice in the Federal Register tomorrow saying, among other things, that the cap on the user fee charged to attorneys and others who receive direct payment of fees for representing Social Security claimants will remain at $83 in 2010.

Increased User Fee Opposed

From HousingWire.com:

The Social Security Administration (SSA) plans to raise its fees for verifying mortgage borrowers’ identities, a move that is facing Congressional opposition.

The fee for mortgage and financial institutions to authenticate borrower Social Security numbers is set to increase from $0.56 to $5.00 per verification on October 1. But Rep. Kay Granger (R-Texas) is said to be leading a Congressional challenge to the increase, according to a statement from Rapid Reporting, a Fort Worth, Texas-based national provider of third-party income, identity and employment verification services.