Title 42, The Public Health and WelfareRelease 119-73not60

§1320e–3 Information Exchange with Payroll Data Providers

Title 42 › Chapter 7— SOCIAL SECURITY › Subchapter XI— GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE SIMPLIFICATION › Part D— Comparative Clinical Effectiveness Research › § 1320e–3

Last updated Apr 5, 2026|Official source

Summary

The Social Security Commissioner may make an agreement with payroll data providers to share information. The goal is to run monthly insurance benefits listed in subsections (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), and (f)(1)(B)(ii) of section 402 and subsection (a)(1) of section 423, and supplemental security income under subchapter XVI, more efficiently and to stop improper payments without needing other verification. Before doing this, the Commissioner must publish a notice in the Federal Register describing the exchange and saying how the data are needed to determine eligibility and benefit amounts and to prevent wrong payments, and whether the data are accurate, current, and complete. Definitions: "payroll data provider" means payroll companies, wage-verification firms, or other groups that collect employment and wage data (paid or free). "information exchange" means an automated comparison of Social Security records with those payroll records.

Full Legal Text

Title 42, §1320e–3

The Public Health and Welfare, Source: USLM XML via OLRC

(a)The Commissioner of Social Security may enter into an information exchange with a payroll data provider for purposes of—
(1)efficiently administering—
(A)monthly insurance benefits under subsections (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), and (f)(1)(B)(ii) of section 402 of this title and subsection (a)(1) of section 423 of this title; and
(B)supplemental security income benefits under subchapter XVI; and
(2)preventing improper payments of such benefits without the need for verification by independent or collateral sources.
(b)Before entering into an information exchange pursuant to subsection (a), the Commissioner shall publish in the Federal Register a notice describing the information exchange and the extent to which the information received through such exchange is—
(1)relevant and necessary to—
(A)accurately determine entitlement to, and the amount of, benefits described under subparagraph (A) of subsection (a)(1);
(B)accurately determine eligibility for, and the amount of, benefits described in subparagraph (B) of such subsection; and
(C)prevent improper payment of such benefits; and
(2)sufficiently accurate, up-to-date, and complete.
(c)For purposes of this section:
(1)The term “payroll data provider” means payroll providers, wage verification companies, and other commercial or non-commercial entities that collect and maintain data regarding employment and wages, without regard to whether the entity provides such data for a fee or without cost.
(2)The term “information exchange” means the automated comparison of a system of records maintained by the Commissioner of Social Security with records maintained by a payroll data provider.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section effective one year after Nov. 2, 2015, see section 824(e) of Pub. L. 114–74, set out as an

Effective Date

of 2015 Amendment note under section 425 of this title.

Regulations

Pub. L. 114–74, title VIII, § 824(d), Nov. 2, 2015, 129 Stat. 610, provided that: “Not later than 1 year after the date of the enactment of this Act [Nov. 2, 2015], the Commissioner of Social Security shall prescribe by regulation procedures for implementing the Commissioner’s access to and use of information held by payroll providers, including— “(1) guidelines for establishing and maintaining information exchanges with payroll providers, pursuant to section 1184 of the Social Security Act [42 U.S.C. 1320e–3]; “(2) beneficiary authorizations; “(3) reduced wage reporting responsibilities for individuals who authorize the Commissioner to access information held by payroll data providers through an information exchange; and “(4) procedures for notifying individuals in writing when they become subject to such reduced wage reporting requirements and when such reduced wage reporting requirements no longer apply to them.”

Reference

Citations & Metadata

Citation

42 U.S.C. § 1320e–3

Title 42, The Public Health and Welfare

Last Updated

Apr 5, 2026

Release point: 119-73not60