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Date:May 5, 2008
Bulletin Number: 818
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Subject

Verification of Social Security Numbers and Names Reported on W-2 Statements for Calendar Year 2007

Purpose

This continues the partnership and collaborative efforts between OSC and agency Personnel/Payroll Offices in reconciling Social Security numbers and names in the State payroll system with Social Security Administration (SSA) files.

Affected Employees

Employees who appear on the Control-D Report NPAY752 (Social Security Number Verification Report).

Background

Verifying and maintaining up-to-date Social Security information in PayServ ensures accurate posting of Social Security earnings and helps employees avoid potential problems with collecting future Social Security benefits.

Effective Date(s)

Immediately.

OSC
Actions

OSC sent the 2007 employee W-2 file to SSA for comparison with SSA’s database using the SSA Enumeration Verification System.

Agency Actions
  • Review the NPAY752 Control-D Report.
  • Send a notification letter to affected employees.  The sample letter can be used as a guide.  Agency payroll offices must retain a copy of each letter and any responses from the employee for four (4) calendar years.
  • If the Social Security information reported in the State payroll system is inaccurate, the agency must enter the correct information into the Personal Data page as soon as possible and issue a corrected 2007 W-2 with the correct Social Security Number or name to the employee by July 7, 2008.  Mismatched Social Security Numbers on reported W-2s are required to be corrected to avoid potential penalties that may be imposed by the Internal Revenue Service.
  • Follow existing OSC procedures for the issuance of corrected W-2s.
  • If the employee believes that the Social Security information reported in PayServ is correct, the agency should instruct the employee to contact the SSA to verify and correct their records.  Agencies should document and retain this information for four (4) calendar years.
  • If a record is returned by SSA as “Deceased” and PayServ shows it otherwise, the agency must verify the Social Security number in PayServ is accurate.  If the Social Security number is correct, the agency must obtain the date of death and update the employee’s record to “Deceased.”  Agencies should submit any paychecks dated in 2007 to OSC on Form AC 1476-P (Report of Check Exchange).
  • When a deceased employee on record is issued additional compensation, PayServ is designed to recognize the proper processing to report such payments to the Federal government.

Note:
Copies of letters and other documentation must be available in the event of an OSC review and/or IRS audit.

Questions

Questions regarding this bulletin may be directed to the Payroll Audit mailbox