SOCIAL SECURITY IS FOR WORKERS ONLY

Many people start to file a new disability claim only to find that they are not covered under the Social Security Act. That's because Social Security only covers workers. And it has specific requirements for coverage or "insured status." After all, it IS a type of insurance.

As a general rule, most people will need 5 years of work out of the most recent 10 year period. That's because you can earn 1 quarter of coverage for each calendar quarter of qualified work. (These are often called "work credits"). So, out of 10 years, it's possible to accumulate up to 40 quarters. Most people will need at least one half of those, or 20 quarters of coverage to be insured with Social Security.

The time frame in which those quarters of coverage were earned is also important, since quarters expire over time. Thus, somebody who worked 10 years ago, but not much in the last 5 years, may not be insured.

So, what happens if you become disabled and haven't worked enough, or recently enough to be "insured"? The unfortunate answer: You have no disability coverage with Social Security, even though you may be severely disabled. I illustrate it this way: "My auto insurance company will not pay for an accident that occurred while I had no insurance coverage." Social Security is the same way.

SOME TERMS YOU MAY ENCOUNTER WITH SOCIAL SECURITY

DATE LAST INSURED (DLI): This is the calendar date that your insured status with Social Security expires. For example, a DLI of 12/31/24 means that you now have enough "work credits" to file a new claim until the end of 2024. After that date, you will no longer be covered, unless you work more and pay more into Social Security. A DLI of 04/30/16 means your insured status expired on April 30, 2016 and you are no longer insured for disability.

PRIMARY INSURANCE AMOUNT (PIA): Your PIA is an estimate of your monthly disability benefit if you become disabled on A certain date. The PIA changes from time to time. The average PIA is around $1,275. The amount differs with each individual, based on age, how long they have worked, and how much earnings they have during their lifetime.

FICA: This is the US government payroll tax which pays for Social Security. It's named after the law that set this program up, "Federal Insurance Contributions Act," passed by Congress in 1935 to fund the new Social Security Act.

QUALIFIED WORK: This means work that earns quarters of coverage ("work credits"). This would be a job where the employer withholds and pays FICA tax in your name. (The employer also must match the withholding in an equal amount. So, if you have $93 withheld from your pay, your employer must match it with $93 of his own money--and submit a total of $186 to Social Security). Some jobs may improperly fail to withhold and pay FICA. For example, if you clean a couple of houses each week for cash, say for a neighbor, that work is not "qualified." Since no FICA is withheld or paid, the work does not earn any Social Security "work credits."

How to Find Out Your Date Last Insured (DLI) and Primary Insurance Amount (PIA)

Since Social Security no longer sends out an annual statement, the best way to get your DLI and PIA is by calling your local Social Security office. By looking at your account on their computer, they can tell you instantly what these are. It's good information to have before you try to file a Social Security disability (SSDI) claim.

Conclusion: It's very possible to be severely disabled, yet not have any benefit available from Social Security. These benefits are only for WORKERS insured under the Social Security Act because they paid a sufficient number of dollars into the disability trust fund. No insurance is free; it all has a premium to be paid. The "premium" for SSDI is FICA payroll deductions.* Without these deductions, there iis no coverage.

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Self Employed individuals, or those who perform work as independent contractors, should pay FICA tax when they file their federal tax returns. Since no FICA was withheld from their pay, they can still get Social Security work credits by paying the FICA fax when they file their federal tax returns. This helps insure they get credit for the work they do to keep SSDI coverage.

THE FORSYTHE FIRM, Huntsville, AL provides expert assistance with Social Security disability (SSDI) claims and appeals. No fee is ever charged unless your claim results in past due benefits following approval. Free consultations are available at (256) 799-0297.