In March of 2019, The Social Security Administration began mailing notifications to employers identified as having at least one name and Social Security Number (SSN) combination submitted on wage and tax statement (Form W-2) that do not match their records. The purpose of the letter is to advise employers that corrections are needed in order for the agency to properly post its employee’s earnings to the correct record. There are a number of reasons why reported names and SSNs may not agree with Social Security records, such as typographical errors, unreported name changes, and inaccurate or incomplete employer records. A copy of the notice can be found here.
Employers should follow the instructions provided on the notice to register for an SSA Business Services On-line Account. Instructions can be found here.
SSA suggests a 60-day response time when replying to these notices, but employers may make corrections after that date if they require more time. There will be no additional notices sent nor any penalties assessed for failure to correct, but the uncorrected SSN’s will remain on the employers file and will be subject to future notification. Employers whose employees have provided invalid SSN’s should be instructed to go their local Social Security Office to seek correction. Once employees have obtained a corrected Social Security Number, Employers should issue a form W2C to correct the SSN. Employers should only submit W2C’s for the most recent year, any errors for previous years will be automatically corrected by the SSA.
SSA has also provided resources to assist Employers in resolving the notices and also has published a list of Frequency Asked Questions.
SSA encourages employers to use their Social Security Number Verification System (SSNVS) to verify employees Social Security numbers to identify incorrect Social Security Numbers before filing forms W2. You should not use this letter to take any adverse action against an employee, such as laying off, suspending, firing, or discriminating against that individual, just because his or her SSN or name does not match our records. Any of those actions could, in fact, violate State or Federal law and subject you to legal consequences.
https://www.ssa.gov/employer/documents/EmpRepStat.pdf
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This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.