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Social Security Publishes Proposed Rule for Payroll Information Exchange to Reduce Improper Payments


Today, the Social Security Administration published a proposed rule, “Use of Electronic Payroll Data to Improve Program Administration,” describing the agency’s plans for accessing and using information from payroll data providers to reduce improper payments, including overpayments, which improves service to customers.

Unreported, late reported, and incorrectly reported earnings are often a cause of overpayments for people who receive Social Security Disability Insurance (SSDI) benefits and Supplemental Security Income (SSI) payments. When a person has been overpaid, the law requires the agency to ask for repayment, which can create financial difficulties for beneficiaries.

“Social Security is taking a critically important step to reduce improper payments, including overpayments, by ensuring we receive timely and accurate wage data. These automated payroll information exchanges will address the inefficiencies associated with self-reporting and manual verification by introducing a more streamlined approach,” said Martin O’Malley, Commissioner of Social Security. “These exchanges will prevent inequities caused by improper payments by enabling Social Security employees to adjust SSI payments before they are issued and help us more efficiently administer SSDI.”


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