In their budget proposal for 2016, SSA has requested new legislation. They would like to make it mandatory for any organization paying workers’ compensation benefits to report that fact to them. SSA does take workers’ comp benefits into account when calculating benefit amounts. They use a system to make these calculations that is slightly more complicated than the method for turning lead into gold. This new requirement would not be unique. SSA gathers information from the IRS, for example, regarding wages a disability applicant might have earned. The issue with this proposed regulation would be whether it is more work than it is worth. A lot of different groups pay workers’ compensation benefits. Most States have some sort of compensation fund. But there are also many, many private insurance companies who are in the game. This new reporting requirement would mean lots of new paperwork and take a lot of employee time. Would SSA recoup enough money to make it worthwhile? Is this a solution in search of a problem?
SSA Proposes Mandatory Reporting of Workers’ Compensation Benefits
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