What is payroll information exchange and how does Social Security use it?

The Payroll Information Exchange Project is a system that helps the Social Security Administration (SSA) get information about people's jobs and pay. This system was allowed by a law called the Bipartisan Budget Act of 2015. It helps SSA manage programs like Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) better.

Starting in April 2025, SSA will get information every month about how much people earned the month before. This information will be kept in a secure system called the Wage and Employment Information Repository. It will help make sure that Social Security payments are correct and done faster.

If you let SSA use your wage information, you won’t have to worry about some penalties for mistakes. You won’t need to report pay raises for SSDI or changes in income for SSI if SSA gets this information through Payroll Information Exchange. However, you still need to report other information as usual.

If you want to opt out of Payroll Information Exchange, you will need to keep reporting your job and pay information directly to SSA, and you won’t get the benefits and protections that Payroll Information Exchange offers.