What is payroll information exchange and how does Social Security use it?
· En español ·
The Payroll Information Exchange Project allows Social Security to obtain information about people's jobs and pay. This was authorized by a law called the Bipartisan Budget Act of 2015 to help us maintain programs like the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) more effectively.
Starting in April 2025, we receive information every month about how much people earned the previous month. This information will be kept in a secure system called the Wage and Employment Information Repository. It will help ensure that Social Security payments are accurate and processed faster.
If you agree to let us use your wage information, you may avoid certain penalties for reporting mistakes. In addition to no longer needing to report your wages to us monthly, for SSDI you won’t need to report pay raises. For SSI you won’t need to report changes in income if we receive this information through the Payroll Information Exchange. However, you are still responsible for reporting other required information as usual.
If you choose to opt out of Payroll Information Exchange, you will need to keep reporting your job and pay information directly to us. You won’t get the benefits and protections that Payroll Information Exchange offers.