800-929-9213
Check your mail! You may have received an EDCOR from the Social Security Administration. Here’s what to do next..
The Social Security Administration (SSA) has begun mailing informational notifications (called Employer Correction Request Notices or EDCOR) to employers who submitted Form W-2 that contained name and Social Security number (SSN) combinations that do not match their records.
The SSA provides free resources and online tools to help you review and correct your records.
There are several reasons why reported names and SSNs may not match. If your employee legally changed their name due to marriage, divorce, court order, or any other reason, they must inform the SSA so they can get a corrected card.
If you have an incorrect SSN, ask your employee to provide you with the exact information as it is shown on their Social Security card. If the number on their Social Security card matches your records, your employee should check with a local Social Security office to resolve the issue. Once resolved, your employee should inform you of any changes and you should provide the correct information to the SSA within 60 days.
It’s important to get any errors fixed as if there is mismatched information, the SSA will not be able to credit your employee’s account with their (and your) contributions.
Use the SSA’s online office locator or call (800) 772-1213 to find the nearest office.
Beginning in February 2019, the SSA will again send an EDCOR to employers with at least one Form W-2 where the name and SSN do not match their records and that corrections are needed.
The IRS could penalize you up to $260 per Form W-2 ($270 in 2019) for incorrect information. You could be penalized again for the same error if you fail to furnish a corrected Form W-2 (using Form W-2c), which would mean paying up to $540 for each incorrect form.
The SSA cautions that you should not take adverse action against your employee solely because you received this letter. In fact, it may violate federal or state law to do so.
Also, you may only ask your employee to provide their Social Security card to verify their SSN. It’s against the law to ask for a specific document like a Social Security card to verify employment authorization.
It may turn out that your employee can’t provide an accurate SSN because they may not actually have an SSN and may not be authorized to work in the U.S. In this case, you should reverify your employee’s employment authorization on Form I-9.
Have questions about EDCOR or anything related to employing a nanny? Call GTM Payroll Services at (800) 929-9213 for a free, no-obligation consultation with a household employment expert.
