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State Agencies Bulletin No. 431

Subject
Verification of Social Security Numbers and Names for Calendar Year 2003
Date Issued
October 16, 2003

Purpose

To continue the collaborative effort between OSC and Personnel/Payroll Offices in reconciling Social Security numbers and names in the State Payroll System and the Social Security Administration (SSA) files.

Affected Employees

Employees who appear on the Control D NPAY752 Report - SSA Verification.

Effective Date

Immediately

Background

OSC issued Payroll Bulletins 357, 364 and 384 alerting agencies that the IRS will start imposing fines and penalties on employers/State agencies starting with the 2002 W-2s whose Social Security information does not match SSA records.

Maintaining up-to-date Social Security information in the State Payroll System ensures accurate posting of Social Security earnings, and ensures that employees avoid problems when they become eligible for Social Security benefits.

OSC Actions

OSC recently issued the 2003 employee data file for comparison with SSA database records using the SSA's Enumeration Verification System (EVS).

The October 2003 Report (NPAY752) is now available in Control D.

Agency Actions

  1. Review the October 2003 Control D Report NPAY752.
  2. Agencies must send a notification letter to all the employees who are on this report. Use the letter attached to Payroll Bulletin 357 as a guide. The Payroll Office must retain a copy of each letter (and any responses from the employee) for four (4) calendar years.
  3. If the Social Security information reported on the State Payroll System is inaccurate, enter the correct information into the personal data panel as soon as possible.
  4. To ensure the IRS requirements for correcting discrepancies in Social Security information are met and to avoid fines and penalties for the 2003 reporting year, agencies must update Social Security information by November 30, 2003.
  5. If the employee believes that the Social Security information reported on the State Payroll System is correct, instruct the employee to contact the SSA to verify and correct their records. Agencies should document this and retain this information for four (4) calendar years.

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 Deductions mailbox.