It’s been popping up on the Internet—the Social Security Administration (SSA) has resumed sending employers letters regarding mismatches of employees’ names and Social Security numbers (SSNs). Since employee name/SSN matches are critical to payroll administration, you’re right to be concerned. But there seems to be some confusion over these letters.
The SSA used to send two no-match letters.
• Employer no-match letters were issued to employers that submitted W-2 reports containing more than 10 W-2s that the SSA couldn’t process and on which name/SSN mismatches represented more than 0.5% of the total forms submitted. Those employers also risked tax penalties for filing incorrect W-2 forms.
Employer no-match letters were an integral part of immigration regulations that were issued in the late 2000s. However, as soon as final regs were released, they were challenged in court. As a result, the SSA stopped issuing th...(register to read more)