<h3By Susan Crockett, Tax Senior Associate | Family, Entrepreneur & Executive Advisory Services Team</h3
<h3The Social Security Administration offers employee SSN verification through business services online to ensure accuracy of wage reporting.
It is a good practice for employers to verify that employee names and Social Security Numbers (SSNs) match the records of the Social Security Administration (SSA). If they do not match, the SSA will send an Employer Correction Request Notice (EDCOR) to the employer. Employers receiving this letter should check their employee records and correct any discrepancies right away. Employers may be subject to fines from the IRS if their records are not corrected by the next time Forms W-2 are filed.
Employers can use the SSA’s online Social Security Number Verification Service to verify that employees’ names and SSNs are accurate with the SSA’s records. If discrepancies are found, the SSA provides a sample letter (SSNVS) that can be used to help employers and employees correct the issue.
Even if you do not receive a letter from the SSA, it is a good idea to use the online Social Security Number Verification Service every time you hire a new employee.
More resources for business owners:
- 2018 Federal Withholding Changes
- IRS Releases Guidance on Business Meals Deduction
- Sales and Use Tax Rules Facing Potential Changes
- How to Recruit and Retain Top Talent with Three Key Elements
As Tax Senior Associate, Susan shares her tax knowledge and insights with her clients as well as her colleagues. She is a member of the Firm’s Family & Executive Advisory Services team. Read more of Susan’s articles on our blog.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.