If you discover an employee’s SSN is incorrect, you should ask to see the employee’s Social Security card to ensure the name and SSN shows correctly in your payroll records. If you receive a corrected name or SSN from the employee after you filed the Form W-2, submit a Form W-2C to make the correction.
Can a Social Security number become invalid?
An invalid SSN is one that the SSA never assigned. In case you’re wondering, a valid SSN will never look like this: The first three digits as “000,” “666,” or in the 900 series.
What happens if an employee does not have an SSN?
If the employee does not have an SSN but has a receipt issued to him by the SSA acknowledging that an application for an account number has been received, the employee must show such receipt to the employer. The date of the statement. The employee’s full name.
What do you need to know about IRS penalty for missing SSN?
Slightly different requirements apply depending on whether an IRS penalty is being assessed for a missing versus an incorrect SSN. An employer must solicit a new employee for the employee’s SSN. An employer must solicit a new employee to complete and submit to the employer IRS Form W-4, Employee’s Withholding Allowance Certificate.
When does an employer need to waive the SSN penalty?
To justify a penalty waiver, the employer must show it initially solicited the employee’s SSN and then used the SSN the employee provided. The employer must re-solicit the employee’s SSN only if it receives an IRS penalty notice that it reported an incorrect SSN for the employee.
When do employers have to re-solicit an employee’s SSN?
The employer must re-solicit the employee’s SSN only if it receives an IRS penalty notice that it reported an incorrect SSN for the employee. If in a later year it receives a second IRS penalty notice, the employer must then make a second re- solicitation.