Social Security to send Employer Correction Request Notices

AT A GLANCE

• After a long hiatus, the Social Security Administration began sending notices to employers to request corrections for employees whose name and Social Security Number did not match on filed forms W-2.
• The program resumed in March of 2019 and was set to continue in March of 2020, but was temporarily suspended due to COVID-19
• SSA will begin sending notices to employers in December of 2020 for mismatched forms filed for the 2019 tax year
• Employers are required to respond using SSA’s Business Services On-line

Employer Correction Notices (EDCOR)

Starting in December 2020, The Social Security Administration (SSA) will mail letters to employers that filed 2019 Forms W-2 containing employee names and Social Security Numbers (SSNs) that did not match SSA’s records. The letter will provide the number of employees with mismatched names and SSNs on 2019 Forms W-2, and provide instructions on how to access the Forms W-2 that don’t match.

The letter will also provide important guidance to employers not to retaliate against employees whose information does not match since the mismatch is not necessarily an indication of fraud and is not to be used as an indication of an employee’s authorization to work in the United States.

Responsibilities as an Employer

SSA will include instructions on how to register for and use Business Services Online (BSO) to view SSN mismatches, as well as how to file Forms W-2C. These instructions can be found on the SSA Business Services Portal.  If you have not previously registered to access this portal, you will be required to complete a one-time registration.

We encourage employers to review this information and make the necessary corrections as instructed by SSA. Employers should also correct this information for any impacted employees who received wages in 2020 to avoid a future mismatch. Paylocity does not need a copy of this notification, and if this notice is sent to Paylocity, it should not be entered as a tax notice as no action is needed from Paylocity to address these notifications.

How you can prevent mismatches

SSA provides a free Social Security Number Verification Service which allows employers to verify employees’ names and SSNs in advance of filing Forms W-2. Using SSNVS can significantly reduce errors. Paylocity offers SSNVS for our clients; please contact your account manager if you’re interested in learning more.

Please note, a mismatch determined on SSNVS does not indicate an employee has intentionally provided false information and should not be used as an indication of an employee’s work authorization status. Employers should not retaliate against employees due to this information.

Paylocity recommends that employers encourage their employees to review their demographic information in ESS including their name and social security number prior to year-end filing. This simple practice can help eliminate mismatches that are due to typographical errors.

Other Resources

For more information and a sample letter, see

https://www.ssa.gov/employer/notices.html.

Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.