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42 U.S.C. § 1320e–3

U.S. CodeFederal
Information exchange with payroll data providers
About This Law
/us/usc/t42/s1320e–3
Title
42 — The Public Health and Welfare
Chapter
CH7
Release
119-84
Release Date
2026-04-17

Section Text

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(a) In generalThe 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) Notification requirementsBefore 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) DefinitionsFor purposes of this section:(1) Payroll data providerThe 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) Information exchangeThe 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. (Aug. 14, 1935, ch. 531, title XI, § 1184, as added Pub. L. 114–74, title VIII, § 824(a), Nov. 2, 2015, 129 Stat. 607.) Statutory Notes and Related Subsidiaries Effective DateSection 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. RegulationsPub. 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.”

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