WASHINGTON, D.C. — The Social Security Administration (SSA) has unveiled a proposed rule titled “Use of Electronic Payroll Data to Improve Program Administration,” outlining plans to leverage information from payroll data providers to mitigate improper payments, including overpayments, and enhance service to customers.
Unreported, late-reported, and incorrectly reported earnings often contribute to overpayments for recipients of Social Security Disability Insurance (SSDI) benefits and Supplemental Security Income (SSI) payments. These overpayments can lead to financial challenges for beneficiaries, as repayment is mandated by law.
Martin O’Malley, Commissioner of Social Security, emphasized the significance of this initiative, stating, “Social Security is taking a critically important step to reduce improper payments, including overpayments, by ensuring we receive timely and accurate wage data.” O’Malley highlighted the adoption of automated payroll information exchanges as a more efficient approach to address the inefficiencies associated with self-reporting and manual verification.
The SSA aims to diminish wage-related improper payments by establishing information exchanges with payroll data providers, a strategy referred to as the Payroll Information Exchange (PIE). This initiative will facilitate the timely and accurate transmission of wage data, reducing manual reporting errors and alleviating the reporting burden for individuals who authorize the SSA to access their wage and employment information through these exchanges.
Moreover, PIE is expected to expedite the identification of unreported or undetected wages, which often contribute to improper payments. By enabling Social Security employees to adjust SSI payments before issuance, the agency anticipates a more equitable and efficient administration of SSDI.
Individuals interested in reviewing the notice of proposed rulemaking (NPRM) may access it here. Public input is encouraged, and comments on the NPRM will be accepted until April 15, 2024.