[Federal Register Volume 86, Number 11 (Tuesday, January 19, 2021)]
[Notices]
[Pages 5303-5305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01026]


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SOCIAL SECURITY ADMINISTRATION

[Docket No. SSA-2016-0039]


Use of Electronic Payroll Data to Improve Program Administration

AGENCY: Social Security Administration.

ACTION: Notice and request for comments.

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SUMMARY: This is advance notification to the public regarding the 
implementation of an information exchange between the Social Security 
Administration (SSA)

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and Equifax, a payroll data provider. We expect that the information 
exchange will enable us to administer Social Security Disability 
Insurance (SSDI) benefits and Supplemental Security Income (SSI) 
payments more efficiently, while helping to prevent improper payments.

DATES: Comments must be received by February 18, 2021.

ADDRESSES: You may submit comments by any one of three methods--
internet, fax, or mail. Do not submit the same comments multiple times 
or by more than one method. No matter which method you choose, please 
state that your comments refer to Docket No. SSA-2016-0039 so that we 
may associate your comments with the correct document.
    Caution: You should be careful to include in your comments only 
information that you wish to make publicly available. We strongly urge 
you not to include in your comments any personal information, such as 
Social Security numbers or medical information.
    1. Internet: We strongly recommend that you submit your comments 
via the internet. Please visit the Federal eRulemaking portal at 
https://www.regulations.gov/. Use the ``Search'' function to find 
docket number SSA-2016-0039. The system will issue you a tracking 
number to confirm your submission. You will not be able to view your 
comment immediately because we must post each comment manually. It may 
take up to a week for your comment to be viewable.
    2. Fax: Fax comments to (410) 966-2830.
    3. Mail: Address your comments to the Reports Clearance Director, 
3100 West High Rise Building, 6401 Security Boulevard, Baltimore, 
Maryland 21235.
    Comments are available for public viewing on the Federal 
eRulemaking portal at https://www.regulations.gov or in person, during 
regular business hours, by arranging with the contact person identified 
below.

FOR FURTHER INFORMATION CONTACT: Betsy Blair, Office of Income Security 
Programs, Social Security Administration, 6401 Security Boulevard, 
Baltimore, MD 21235, (410) 965-0041. For information on eligibility or 
filing for benefits, call our national toll-free number, 1-800-772-1213 
or TTY 1-800-325-0778, or visit our internet site, Social Security 
Online at http://www.socialsecurity.gov.

SUPPLEMENTARY INFORMATION:

Description of Information Exchange

    Congress enacted the Bipartisan Budget Act (BBA) of 2015 \1\ on 
November 2, 2015. Section 824 of the BBA added section 1184 to the 
Social Security Act (Act) \2\ and authorized us to enter into 
information exchanges with payroll data providers for the purposes of 
efficient program administration and prevention of improper SSDI and 
SSI payments. Section 824 defines information exchanges as the 
automated comparison of our system(s) of records with records of 
payroll data providers.\3\ Section 824 further defines payroll data 
providers to include payroll providers, wage verification companies, 
and other commercial or non-commercial entities that collect and 
maintain data regarding employment and wages.\4\ Although the Act and 
our rules require individuals to report any changes that could affect 
SSDI entitlement, SSI eligibility, or benefit amounts, we do not always 
receive these reports timely. By entering into an information exchange 
with the payroll data provider Equifax, we will be able to obtain the 
wage and employment records of Equifax and will therefore be able to 
receive wage information timely without the need for additional 
verification from other sources.
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    \1\ Public Law 114-74, 129 Stat. 584, 607.
    \2\ 42 U.S.C. 1320e-3.
    \3\ 42 U.S.C. 1320e-3(c)(2).
    \4\ 42 U.S.C. 1320e-3(c)(1).
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    We will request authorization \5\ from SSDI and SSI claimants, 
recipients, or deemors, to obtain their wage and employment information 
from payroll data providers, like Equifax. However, failure to sign the 
authorization does not lead to ineligibility for benefits. Once the 
authorization is signed, it will remain in effect until the earliest of 
the following occurrences: (1) It has been revoked in writing by the 
individual or their legal guardian; (2) all entitlement to or 
eligibility for benefits or payments has terminated, there are no other 
claims or appeals pending, and all periods for appealing any adverse 
determinations or decisions have lapsed; (3) there has been an adverse 
determination or decision on the claim, the individual is not otherwise 
currently entitled to or eligible for payments, there are no other 
claims or appeals pending and all periods for appealing any adverse 
determinations or decisions have lapsed; or (4) for SSI deemors, the 
deeming relationship ends. Authorizing us to obtain information 
directly from a payroll data provider like Equifax protects the 
beneficiary or recipient from a penalty of non-payment or ineligibility 
under section 1129A of the Act,\6\ for any omission or error from wages 
reported by Equifax. Additionally, we will find good cause and not 
subject recipients who receive SSI payments to a monetary deduction 
penalty of their payments under section 1631(e)(2) of the Act \7\ if 
they fail or delay to report a change in employer and gave us the 
authorization to obtain information from Equifax.
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    \5\ We request such authorization by using form SSA-8240, OMB 
0960-0807, ``Authorization for the Social Security Administration to 
Obtain Wage and Employment Information from Payroll Data 
Providers.''
    \6\ 42 U.S.C. 1320a-8a.
    \7\ 42 U.S.C. 1383(e)(2).
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    We will request the wage and employment information listed below 
from Equifax via a secure means of electronic transmission, every 
month, for each beneficiary and recipient with a valid authorization 
and who is actively requesting or receiving benefits. In response to 
our request, Equifax will provide the wage and employment information 
or respond that it has no records. We will conduct this information 
exchange in accordance with all applicable laws, to include the Privacy 
Act of 1974, 5 U.S.C. 552a and the Social Security Act, 42 U.S.C. 
1306(a).
    Equifax will use reasonable procedures \8\ to ensure maximum 
accuracy, relevance, and timeliness of its wage and employment 
information and must notify us within 24 hours if it discovers that it 
submitted incorrect information to us.
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    \8\ Equifax shall follow all technical specifications provided 
by us. We provided technical specifications, characteristics, and 
needs. The technical specifications include detailed requirements 
and pertinent information regarding the request, response, security 
requirements, Web Service, data retention, and processing guidelines 
related to the information exchange.
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    We have determined that the general quality of the wage and 
employment information that will be received via the information 
exchange meets our standards and is:
    <bullet> Sufficiently accurate, up-to-date, and complete.
    [cir] Equifax tests the data of employers to ensure it contains all 
of the data elements identified below and conforms to its system 
requirements; regularly conducts quality assurance assessments to 
ensure accuracy; and makes wage and employment data available within 24 
hours of receipt from employers.
    <bullet> Vital to accurately determine (a) entitlement to SSDI, (b) 
eligibility for SSI, and (c) SSI payment amounts.
    [cir] We require this information because wage and employment data 
are factors that can affect entitlement, eligibility, and payment 
amounts.

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Because the information is coming directly from the employer through 
Equifax, we will receive timely and accurate wage and employment 
reporting and will be able to administer SSDI benefits and SSI payments 
more efficiently.
    <bullet> Needed to prevent improper payments of SSDI and SSI 
benefits.
    [cir] As indicated above, we do not always receive timely reports 
of changes that could affect SSDI entitlement, SSI eligibility, or SSI 
benefit amounts, and this may cause improper payments. Requirements to 
verify wages may also cause delays that lead to improper payments. 
Changes in a person's work and wages are a leading cause of improper 
payments in the SSDI and SSI programs. While we use a number of sources 
to verify wage amounts, verifying wages is currently a manual process, 
and we continue to rely on beneficiaries to self-report wages.\9\ With 
automated information exchanges, we will be able to obtain the wage and 
employment records timely and without the need for additional 
verification from other sources.
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    \9\ See page 22 of the Congressional Justification for SSA's 
Fiscal Year 2020 budget available here: https://www.ssa.gov/budget/FY20Files/FY20-JEAC_2.pdf.
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Data Elements

    The information exchange will require SSA and Equifax to exchange 
specific data elements. We will send the data elements below to Equifax 
to ensure we are requesting employment and wage information for the 
correct individual and timeframe. Equifax and SSA will use a federally 
compliant, secure means to exchange data and conduct the automated 
comparison of SSA to Equifax records under this information exchange.
    In order to request wage and employment information, we will 
provide the following information from the Supplemental Security Income 
Record and Special Veterans Benefits for SSI \10\ and the eWork for 
SSDI \11\ to Equifax:
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    \10\ See 71 FR 1830 (Jan. 11, 2006) to view the System of 
Records Notice 60-0103.
    \11\ See 68 FR 54037 (Sep. 15, 2003) to view the System of 
Records Notice 60-0330.
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    (1) Social Security number (SSN) of the beneficiary, recipient, or 
deemor;
    (2) Start date and end date (month and year) of wage and employment 
information being requested;
    (3) Tracking identification number.
    (In response to our request, Equifax will provide the following 
wage and employment information to us, if available:

(1) Wage earner's SSN
(2) Wage earner's first name
(3) Wage earner's last name
(4) Employer name
(5) Employer identification number
(6) Employer address
(7) Transmission date of wage and employment response from Equifax to 
us
(8) Date of payment
(9) Amount of gross pay
(10) Frequency of pay
(11) Pay period begin and end date
(12) Year-to-date gross wage amount
(13) Applicable deductions, including but not limited to the following:
    a. Federal, state and local taxes
    b. Federal Insurance Contributions Act taxes
    c. Medicare taxes
    d. Garnishment
    e. Cafeteria plans
(14) Employer telephone number
(15) Wage earner's job title
(16) Employment begin date
(17) Employment end date
(18) Amount of net pay
(19) Pay rate
(20) Hours worked per pay period

Request for Comments

    We are requesting comments concerning the specifics of our proposal 
to implement an information exchange under section 824 of the BBA. We 
ask that, in preparing comments, you address questions such as:
    1. Have we identified the appropriate design for an information 
exchange?
    2. Are there any additional operational elements of an information 
exchange that we should include?
    We will not respond to your comments, but we will consider them as 
we review our plan to implement the information exchange under section 
824 of the BBA.
    The Commissioner of the Social Security Administration, Andrew 
Saul, having reviewed and approved this document, is delegating the 
authority to electronically sign this document to Faye I. Lipsky, who 
is the primary Federal Register Liaison for SSA, for purposes of 
publication in the Federal Register.

Faye I. Lipsky,
Federal Register Liaison, Office of Legislation and Congressional 
Affairs, Social Security Administration.
[FR Doc. 2021-01026 Filed 1-15-21; 8:45 am]
BILLING CODE 4191-02-P