Why does the Social Security Administration charge an assessment for withholding and paying an authorized fee from the claimant's past-due benefits to a representative who is an attorney or eligible-for-direct-payment non-attorney?
The Social Security Act requires Social Security to charge an assessment or "user fee" to a representative who receives all or part of his or her fee through direct payment from Social Security. Currently, the assessment is 6.3 percent of the fee amount otherwise payable from the claimant's Title II and/or Title XVI past-due benefits, but not more than $75 per case. The assessment is made to cover the administrative costs of processing these fees. The funds Social Security collects are then credited to the appropriate Social Security trust fund and/or the general fund of the Treasury.