January 9, 2010
You have an equal chance of submitting a W-2 with a name/Social Security Number (SSN) mismatch as getting one of those soda bottle game tops marked “winner.” Your odds for either: about 1 in 10.
SSA does its best to fix the errors. But the 40% errors not fixed go into the “suspense file,” meaning they’re not credited to the employee’s retirement earnings until the problem’s resolved.
Here are three ways to fix mismatches before they ever reach SSA:
- Let SSA give you a heads up. Verify employees’ SSNs using the free Social Security Number Verification System. Using this system will allow you to have employees correct name/number mismatches before you issue W-2s. Info: www.socialsecurity.gov/employer/ssnvshandbk/ssnvs_bso.htm
- Weed out those “invalid” SSNs. As of June 2009, SSA hasn’t issued these SSNs:
- 111-11-1111, 333-33-3333, 123-45-6789
- SSNs with 000 or 666 as the first three left-most digits
- SSNs equal to or greater than 773 as the first three left-most digits
- SSNs having 00 as the fourth and fifth digits, and
- SSNs with 0000 as the last four digits
- Reject SSNs starting with “8” or “9”. Be careful: SSNs don’t start with an “8” or “9” in the first position. These numbers do exist, but they’ve been issued by the IRS as Individual Taxpayer Identification Numbers or Federal Employer Identification Numbers.
- Someone provides an ITIN. First explain the error to the employee, and why you can’t accept that number. Ask him or her to visit the local SSA office to get an SSN if possible.
Source: Keep Up To Date on Payroll, January 18, 2010
This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.