Social Security’s New $74 Administrative Charge: Who It Applies To

The Social Security Administration (SSA), which manages Social Security benefits for older Americans, has rolled out a revised fee schedule. These charges apply to administrative requests such as manual third-party Social Security number verification, copying an electronic folder, and obtaining earnings information. They are not deducted from beneficiaries’ payments and do not reduce anyone’s benefits.

Here’s a closer look at what changed, why the fees were updated, and who may be affected.

SSA updates its standard administrative fee schedule

The SSA published its revised standard administrative fees in the Federal Register and said the new amounts apply to requests received on or after October 1. Because the agency uses the date a request is received, some mail sent near the end of the prior month could still be charged the higher amount if it arrives after the effective date.

The agency also said it is required to review and adjust its standard administrative fees at least every two years. The latest update, according to the SSA, is based on its most recent cost analysis.

Who the revised fees affect

The charges apply to requests for information that is not directly tied to the administration of Social Security programs. In those cases, the SSA can require the requester to cover the cost of producing the information. The fees are billed to outside parties such as employers, insurers, courts, and background screening companies, while Social Security beneficiaries are generally not affected.

Some of the charges increased as part of an effort to keep taxpayers from subsidizing requests that fall outside the SSA’s central mission.

Manual third-party Social Security number verification

One of the biggest changes involves the fee for manually verifying a Social Security number for a third party. That charge rose from $61 to $74. This verification service is not a fee charged to beneficiaries, and it is not connected to retirement, disability, or survivor benefit claims.

The SSA also offers a free online Social Security number verification service. Registered users can use it to confirm that employee names and Social Security numbers match SSA records.

Updated schedule of administrative fees

Along with the higher manual verification charge, the full fee schedule includes nine other items with prices ranging from $22 to $151:

• Copying an Electronic Folder: $75
• Copying a Paper Folder: $151
• Field Operations Headquarters Certification: $65
• Record Extract: $46
• Third Party Manual SSN Verification: $74
• Central Processing Certification: $30
• W-2/W-3 Requests: $54
• Form SSA-7050, Request for Social Security Earning Information: $49
• Requests for Copy of Original Form SS-5, Application for a Social Security Card: $23
• Requests for Copy of Numident Record (Computer Extract of the SS-5): $22

What the higher fees mean

Because the charges do not affect benefit claims, most beneficiaries will not see any direct impact. The fees mainly apply to third parties requesting information that is outside the SSA’s core responsibilities.

Among the listed items, the $49 fee for earnings information may have the broadest effect. An SSA notice estimated that the agency receives about 66,800 SSA-7050 F4 requests each year, creating roughly 12,247 burden hours for staff. The increased fee may help offset that work, although it is unclear how many requesters will pay or decide not to file.

Ways to avoid paying the fees

The SSA offers free alternatives for obtaining some of this information. Anyone with a my Social Security account can sign in to view a Social Security Statement online. That statement includes some of the same details available through paid requests, including estimates of retirement, disability, and survivor benefits, credits for Medicare qualification, earnings history, and taxes paid. However, the statement contains uncertified yearly earnings and does not include employer information, while the $49 request provides more detailed data such as employer names and addresses.

You can also create an IRS Individual Online Account to view, print, and download personal tax records and transcripts. Those records include copies of past tax returns, tax account information, age and income statements, and verification of non-filing letters.

The bottom line

The updated SSA fees are mostly relevant to third parties such as employers and insurers. The information covered by the charges is not usually something many beneficiaries need, and tools like a my Social Security account can provide much of it online at no cost.

Reviewing your Social Security Statement can still be useful for retirement planning. It may be worth sharing with a financial advisor and checking regularly to make sure you are staying on track.