Employers may soon receive an announcement letter from The US Social Security Administration (SSA) notifying them of any discrepancies in recently submitted records of employee names and Social Security numbers that do not reconcile with their records. A recent notice received from the SSA, states, “If we cannot match the name and SSN reported on a Form W-2 to our records, we cannot reconcile employer wage reports and credit earnings to a worker’s record. When earnings are missing, the worker may not qualify for the Social Security benefit they are due or the benefit amount may be incorrect”.
To avoid potential penalties and fees, now is a good time to be proactive and review your current employee records and ensure the information you are reporting is complete and accurate. Should you have any questions, the SSA is directing employers to a FAQ page on their website. You can view the FAQ by clicking here. There is also a toll-free telephone number: 1-800-772-6270 available Monday through Friday 7a.m. to 7p.m.
Disclaimer: These materials are provided for informational purposes only and are not intended as legal or tax advice. Readers of the IBS Blog should contact their legal or tax professionals to discuss how these matters relate to their individual circumstances.