One-on-One Help from the Social Security Administration (SSA)
Employers who need help with general wage reporting information can call the SSA's Employer
Reporting Service Center toll free at 800-772-6270.
For answers to more technical questions, employer service liaison officers are available around the country. They are the experts in wage reporting. They can help solve even the toughest problems. Call 800-772-6270 and ask for the liaison officer for your area.
Other Services Available
Form W-2 Filing Information
Each year, employers must send Copy A of Forms W-2 with Form W-3 to the SSA by the last day of February (or last day of March if they file electronically) to report the wages and taxes of their employees for the previous calendar year.Employers can now find all of the wage reporting information and publications they need to meet their wage reporting responsibilities online.
Electronic Filing of W-2s
Employers and their authorized representatives can now file W-2 reports over the Internet. There are two electronic filing methods available through SSA's Business Services Online Web site:
Upload a Wage Report
You can upload a wage report file formatted according to SSA's Magnetic Media Reporting and Electronic Filing for Tax Year 2003 specifications. This option is ideal for any size filer.W-2 Online
Effective January 1, 2003, you can complete up to 20 Forms W-2 right on your computer, electronically submit them to SSA, and print copies suitable for distribution to your employees. This option is ideal for businesses with 20 or fewer employees, or for individuals with household employees.Registration is required for both options.
Third-party preparers need only register one in their own firm's name. December is the preferred month for registering. SSA usually begins accepting electronic submission the first week of January. Simply go to SSA's Web site, click on the link to "Integrated Registration for Employers and Submitters (IRES)," and follow the prompts.
Internet filing is fast, secure, and economical. It also offers these great features:
- an additional 30 days to file your Federal W-2 reports (until the last day of March);
- more time to spot errors before submission;
- an immediate receipt for your file;
- the ability to check on the status of your file; and
- a paperless way to file.
For more information on electronic filing, or to download a copy of a wage report file in the format for Magnetic Media Reporting and Electronic Filing (MMREF), visit SSA's Employer Reporting Information, and click on "How to File, under Electronic Filing." For one-on-one assistance, you may contact the employer service liaison officer serving your area.
Verifying Employee Names and Social Security Numbers (SSNs)
The name and SSN listed on each W-2 must match the name and SSN on the employee's Social
Security card. This match ensures that the earnings of each worker are properly recorded to
their lifetime earnings record. The earnings record is the basis for determining Social
Security benefits eligibility and benefit amount.
SSA's free Employee Verification Service (EVS) easily identifies inaccurate name and SSN combinations so they can be corrected before you submit your W-2s to SSA. There are three convenient ways to use the service:
Under 5 Names
Contact 800-772-6270. For each name and SSN you want verified, have ready the following information when you call: SSN, last name, first name, middle initial (if applicable), date of birth, gender. Also have available the employer name and EIN (Employer Identification Number).Under 50 Names
Contact your nearest Social Security Office. You can locate their address online, or by calling 800-772-1213.Over 50 Names
This option is ideal for employers who want to verify their entire payroll database. You can submit your request on paper listing, magnetic tape, or diskettes. You must register for this service. For details visit SSA's Social Security Number Verfication information online.
Setting the Record Straight with the IRS
If you omit some information form your tax return, make an error, or miss a tax-filing
deadline, it doesn't have to be a major problem. However, you should take prompt action
to set things right. It can be less expensive and less complicated to correct errors
before receiving notices from IRS. Forms you may use to report corrections include:
Form 941, Employer's Quarterly Federal Tax Return
If you make an error in the amount of taxes you withheld from employees, you can make an adjustment on the next return, if it is during the same calendar year. Attach Form 941C, Supporting Statement to Correct Information.Form 941C, Supporting Statement to Correct Information
Generally, you must fill out this form, or a similar statement, if the amount of employee wages you reported in the prior period was incorrect. Use this form to make adjustments at any time within 3 years of the return due date, or the date the return was filed, whichever is later. (For purposes of the statute of limitations, the due date of each of the Forms 941 filed during a tax year is April 15 of the year following the close of that tax year.) You may also have to file Form W-2C and Form W-3C. Form 941C is never filed separately, but instead, is filed with another form such as Form 941.Form W-2C, Corrected Wage and Tax Statement, and Form W-3C, Transmittal of Corrected Wage and Tax Statements
These forms are used to correct the information about your employees' total earnings and withholdings for the year.Form 1040X, Amended U.S. Individual Income Tax Return
If you made a mistake on your individual tax return, use this form to correct any errors. If you owe tax as a result of error, you should send the additional tax owed with Form 1040X. This will stop additional penalties and interest from accruing on the additional tax owed.Form 1065, U.S. Return of Partnership Income
If you made a mistake on a partnership return, check the box for an amended return on Form 1065, then follow the instructions. Give each partner a copy of the amended Schedule K-1.Form 1120X, Amended U.S. Corporation Income Tax Return
If you made a mistake on your corporate tax return, use this form. If you owe tax, you should send it in with the form.Forms 1099 and 1098
These are examples of information returns. Use the instructions for making corrections that come with the form.Federal Tax Deposits (FTDs)
You should report the deposited amounts on your 941 quarterly payroll tax return. Correct any mistakes as soon as possible. If you are not required to make your deposits electronically, be sure to include a Form 8109 (the FTD coupon) with each deposit you deliver or mail to an authorized depository.
A Notice form the IRS: What Should You Do?
If you get a notice of any kind from the IRS, open it, read it, then do something about it.
Most notices include a deadline for your response, so it's important to be prompt. If you
have questions about the notice, most notices include instructions on how to get more information.
The IRS writes to people for many reasons. Examples included:
- Your notice may request information that was missing from your tax return;
- If your notice is about an examination or audit, you will be asked to produce certain information for the examination at a specified time and place; or
- Your notice may ask for payment of a tax bill.
Examples of other notices include:
CP 102: A math error was found on certain forms (such as Forms 941, 942, 943, or 945 return) that you filed, and the IRS believes you owe more tax.
CP 138: The tax you overpaid on one tax return was applied to another tax return where you owed tax.
CP 165: Your check for your FTD or estimated taxes was returned. This notice asks for the payment, plus a bad check penalty of two percent (the minimum penalty is $15).
CP 205: You used the wrong taxpayer identification number on your FTD coupon.
CP 2501: A discrepancy was found between what you reported as your income, credit, or deduction, and what the IRS had on file.
Whether or not you agree with the notice, call or write the person listed on the notice, or call your local IRS office before the deadline. It is important to let the IRS know that you received the notice and that you are doing something about it.
Putting off contacting the IRS, especially in the case of notices requesting payment, can increase the amount you owe because penalties and interest keep accruing. The IRS Web site now has informatino to help you better understand some of their notices. You can reach the IRS Web site at the Small Business and Self-Employed One-Stop Resource.
Information courtesy of the Internal Revenue Service.
