On March 7, 2019, Social Security Administration (SSA) officials announced during the IRS Payroll Industry monthly conference call that this year will resume mailing to employers its Employer Correction Request Notices (EDCOR), commonly referred to as "Social Security No-Match Letters." The notice provides information about Forms W-2 processed for tax year 2018 wherein the employee name and Social Security Number (SSN) reported on the Form W-2 does not match the SSA's records.

These notices will be sent only to employers, and not to the employees whose name/SSN is the subject of the notice.

The SSA will mail the notices in phases as follows:

• Starting at the end of March 2019: Employers that filed their 2018 Forms W-2 electronically by the January 31, 2019 due date
• Starting in fall 2019. Employers that filed the 2018 Forms W-2 on paper or that filed them electronically after January 31, 2019

What to do when you receive a Social Security No-Match Letter

If you receive a Social Security No-Match letter it is suggested you take these steps:

• 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 you obtained at the time of hire.
• If the employee name and SSN reported on the Form W-2 matches the information provided to you by the employee, work with the employee to resolve the matter. The SSA provides a sample employee letter for this purpose.
• If you discover that you incorrectly reported the employee's name and SSN on Form W-2, follow these steps for making a correction.

Are employers at risk of penalties for name and SSN mismatches?

The mere receipt of a Social Security no-match letter does not lead to the imposition of penalties; however, failure to take proper action over time does present a risk.

These follow-up steps for obtaining a penalty waiver for missing or incorrect reporting of a name or SSN are explained in IRS Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs:

• IRS notice received concerning missing SSN. If employers receive a penalty notice from the IRS (not the SSA) based on a failure to include the employee's SSN on the Form W-2, and the employer seeks a waiver of the penalty based on the failure of the employee to provide the SSN, the following steps demonstrate that the employer acted responsibly:
• The employer can demonstrate that it made an initial solicitation for the SSN in person, by mail, electronically or by telephone at the time the employee began work. (For example, the employer can provide a copy of the Form W-4 provided by the employee with the missing or incorrect SSN.)
• The employer made an annual solicitation for the employee's SSN during the same calendar year (or by January 31 of the following year for employees who began work during the preceding December). If the employer still did not receive a valid SSN, the employer makes a second annual solicitation by December 31 of the year following the calendar year in which the employee began work. The annual solicitations may be made in person, by mail, electronically or by telephone.

Being proactive about name and SSN mismatches

There are two important steps employers can take to identify employee name and SSN mismatches ahead of notices from the SSA or IRS.

• Ahead of filing Forms W-2 for the tax year, submit an employee list though the SSA's Social Security Number Verification Service. Read instructions on how to use our Social Security Number Verification Service.
• After filing Forms W-2, access the SSA's Business Services Online (BSO) to identify any employee and SSN mismatches flagged by the SSA for the tax year. To learn how to find errors in BSO, read the following instructions:
• Employers instructions
• Third-party submitters instructions

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