Starting at the end of March 2019, employers that filed their 2018 Forms W-2 electronically by the January 31, 2019 due date may receive an “Employer Correction Request Notices” (EDCOR), also called “Social Security No-Match Letters”.
What do employers need to do if they receive one?
- Confirm that the name and SSN reported on Form W-2 agrees with information provided by the employee on the Form W-4. Alternatively, compare the information reported on Form W-2 to the photocopy of the employee’s Social Security card they obtained at the time of hire.
- If the employee name and SSN reported on the Form W-2 matches the information provided to them by the employee, work with the employee to resolve the matter. The SSA provides a sample employee letter for this purpose.
- If the employer discovers they incorrectly reported the employee’s name and SSN on Form W-2, follow these steps for making a correction:
|Nature of name or SSN error||Correction to Form W-2c||Correction to Form W-3c|
|Employee name or SSN was incorrectly reported on original Form W-2.||Complete boxes d-i for up to the statute of limitations. Tell employee to correct the Form W-2 attached to Form 1040.||Complete boxes d-j for at least up to the statute of limitations.|
|Employee obtains new or reissued Social Security card (e.g., change in US resident status or name change).||Complete boxes d-i only for most current year.||Complete boxes d-j only for most current year.|
|Name and SSN were blank on original Form W-2.||Call the Social Security Administration (SSA) at +1 800 772 6270 for instructions.||Call SSA at +1 800 772 6270 for instructions.|
Why it matters?
Failure to take proper action does present a risk and may lead to penalties being imposed.