Disability, General, SSI

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

February 15, 2024 • By

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Last Updated: February 15, 2024

Social Security Administration SealToday, 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.”

Social Security is working to reduce wage-related improper payments by using its legal authority to establish information exchanges with payroll data providers. These exchanges will help ensure the agency receives timely and accurate wage data. These exchanges and the agency’s planned business process is called the Payroll Information Exchange (PIE).

PIE will help reduce manual reporting errors as well as the reporting burden for individuals who authorize Social Security to obtain their wage and employment information through these information exchanges and work for employers whose payroll data is available through the exchange. PIE will also help to more quickly identify wages that often go unreported or undetected and which can lead to improper payments.

People may read the notice of proposed rulemaking (NPRM) here. Public comment is an important part of this process and people may provide comments on the NPRM by April 15, 2024.

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  1. Jim

    Both you and Dick B are REAL idiots. How many more names do you want to post under!

    Reply
  2. Linda J.

    I receive my SS check every month. That’s all the money I have to live on which I appreciate. I certainly cannot afford any more money taken out of my check.
    I am unable to work any longer.
    I am so behind on appraisal district property taxes. This is on a house that was built in 1963. It’s in bad shape. I only do what I have to do as far as maintenance.
    Just found out that a second round of another mass whlch I hope turns out to be as minimal as 2022. Then comes all the medical bills that insurance does cover. Fortunately I am blessed I can pay out $35 per month.
    I am struggling every day.
    I appreciate the work that SS does.
    I do not not earn extra money.
    If I understand these new programs some are good, but I don’t like the idea of anyone checking on my personal bank account, etc
    Please advuse.
    Thank you

    Reply
    • Johnny H.

      Hello, Absolutely I agree

      Reply
    • Sue

      Hi, Linda. Thanks for reading our blog and for your comment. Our proposed “Payroll Information Exchange (PIE)” would not apply to you because you’re not employed. At this time, the Payroll Information Exchange is only a proposal. The public comment period ends April 15, 2024. You can read the notice of proposed rulemaking (NPRM) here. We hope this helps.

      Reply
  3. A. V.

    I have been overcharged for Medicare since July 2022, I have gone in person with tax returns, called, provided the information with fax and still am waiting. It is under review? What is to review, I was heavily overcharged. Please help the people on fixed income that are overcharged and delayed their repayment.
    Thank you!
    De V

    Reply
    • Sue

      We’re sorry to hear about your situation, A. Vovchansky. For your security, we do not have access to private information in this venue. We encourage you to continue to work with your local Social Security office. You can ask to speak with a supervisor during your next call or visit. For more information about what you can do if you think your Medicare premium is incorrect, read our fact sheet. We hope this is resolved soon.

      Reply
    • Christina

      I was overcharged for almost 10 years. Having been reclassified years later in my military retirement status. If your case is similar I would be happy to help. I have all my paperwork and laws and contacts for success. christina@cgaffney.com

      Reply
  4. Paul D.

    I retired at 62 years old in 2020 and the first week of 2021, I received a large payout of benefits from the 31 years of saved sick time, vacation time etc. Their own website shows that that income is exempt for 2021 because it was earned in previous years. I made an appointment with social security and they were very understanding, but that’s as far as I got. Because of their failure to adjust my income, my Medicare is 527.00 a month with IRMMA. They could care less. After my third appeal they acknowledged I was correct but never went back and re-calculated what I overpaid. Big government gone bad. No accountability.

    Reply
    • Bill

      If you received the money in 2021 it counts towards your MAGI for that year and will raise your part B and D cost for 2023 only. It does not matter when you earned it only what year you received it.

      That would be like trying to say; I sold stock that went up in value over the last ten years so do not count it as income in the year I sold it and got the money.

      Reply
    • Sue

      We’re sorry to hear about your situation, Paul. For your security, we do not have access to private information in this venue. The 2024 Medicare premiums for most people were determined by the tax return they filed in 2023 for tax year 2022. In 2024, individuals with a “modified adjusted gross income” (MAGI) of $500,000 or more or married couples with a MAGI of at least $750,000 pay more for Medicare. Your large payout from your employer for saved sick and vacation time could have caused an increase in your monthly premiums. For more information, please visit our Premiums: Rules for Higher-Income Beneficiaries webpage. If you still need assistance, please continue to work with your local Social Security office. You can ask to speak with a supervisor during your next call or visit. We hope this helps.

      Reply
  5. Deiz N.

    If people can’t see the bigger picture that this is the government putting it’s nose into people’s payroll further than they are just skimming the article, not reading it at all, or just ignorant. This is nuts. They really are getting PIE alright. They are putting a nose right into EVERYONE’S check to do it too. Not just beneficiaries. That wouldn’t work. No. You will have to agree to this beforehand. As soon as you do…then the government sees everything all the time. Your number at birth really WILL become an identification for damn near everyone all the time at every job.

    Reply
  6. Gerald

    I was on Social Security Disable and when I turned 65 they put me on regual SS that knocked me out of a lot of things I could get that now I can’t that was not fair to me, Now what can I do about it

    Reply
    • Dick B.

      SOCIAL SECURITY ADMINISTRATION is being RANSACKED FROM WITHIN by their very own OIG, CDI PROGRAM UNIT, overseers, contractors and affiliates who are involved in nefarious activities. They are intentionally causing financial hardships, blocking all types of income so you can’t progress, poisoning people by giving them unknown substance without their knowledge by threatening and paying someone who usually would have access to your nutrition to put these things into your food and beverages. They intentionally block all opportunities for income and also online sources of income, so don’t think being an online trader will work, and isolate the recipient/ex-recipient. All this while they threaten and pay people “to not say anything” it’s a secret” “they’re not suppose to know” ” don’t tell them”.
      THEY INTENTIONALLY CAUSE RECIPIENTS AND EX RECIPIENTS to remain stagnant and unemployed, so they can continue to milk the SSA and contracts. People remain quiet because they are threatened and also brainwashed by hating the recipient/ex-recipient by thinking the false allegations are true, as the recipient is dehumanized in a smear campaign where many things are fabricated. That’s why most recipients can’t seem to be able to climb out of the Social Security Administration’s Poverty Programs. Look who’s to benefit from this and you’ll find the real culprits, and it’s not the people that have to wait 30 days to receive a check once a month.

      Reply
      • Jim

        You are a REAL idiot!

        Reply
    • Sue

      We’re sorry to hear about your situation, Gerald. When you reached your full retirement age, we were required to automatically convert your disability benefits to retirement benefits. Your benefit amount likely remained the same. We hope this helps.

       

      Reply
  7. Les R.

    I started drawing at 62 and earned around 40k paid more SSI now I’m paying back nearly 400.00 a month out of my SSI to the tone of 10k I will be 65 in a couple months. I think it crazy that anyone would have money taking out of their SSI because you are trying to make it.

    Reply
  8. Daniel

    My wife “retired” July 2023, the next month the company issued a payment to her for unused vacation & sick leave.
    The SSA.GOV CLAMED my wife was still employed. That was false.. they are with holding her SSA check

    Reply
    • Sue

      Thanks for reading our blog, Daniel. Payments your wife received for her unused vacation and sick leave are likely to be what we refer to as “special wage payments”. These payments generally should not affect your wife’s Social Security benefit if they were for work done before she retired. Your wife should contact her local Social Security office right away to report her special wage payments and, if necessary, appeal the overpayment. Check out our Special Payments After Retirement fact sheet for more details. We hope this helps.

       

      Reply
  9. Toni S.

    It was reported that My husband and I had overpayments of the Medicare premium that has been being paid by our state and now the SSA is taking it back. So we will forfeit $600 this month. I do t think it’s fair that it’s all deducted at once. Especially since we didn’t get notice till after the fact. The statement said we only had to pay in January but they are also deducting December.

    Reply
    • Sue

      Hi, Toni. Thanks for reading our blog and for your question. We encourage you to contact your local Social Security office to discuss your options, which include establishing a monthly repayment plan. To learn more about overpayments and our process, check out our blog and our Frequently Asked Questions. We hope this helps.

       

      Reply
  10. Rached B.

    I think this is an important step forward to elevates the burden for many whom needs to report their wages every month and not trapped dealing being overpayed or underpayed. I hope it will pass to make one life easier.

    Reply

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