According to the Internal Revenue Service's Information Reporting Program Advisory Committed (IRPAC), one of the most difficult issues faced by the government and the private sector annually is the accuracy of payee names and Social Security Numbers (SSNs). Employers should be aware the Social Security Administration (SSA) cannot process W-2 submissions if the employee name and SSN combination do not match what the SSA has in its database. Employers can face fines of up to $50 per incorrect W-2 submission, even if the first submission was on time.
What Can Employers Do?
- Require new employees to bring a copy of the their Social Security Card.
- Take advantage of SSA's free methods for verifying employee names and SSNs - Call the SSA at 1-800-772-6270 for free verification.
For more information about verifying employee information use this link: Social Security Online