Employers are required to report wages annually for each employee on W-2 forms to the Social Security Administration (SSA). SSA receives and processes more than 250 million W-2 reports each year. These reports are the source of wages credited to workers' earnings records. SSA uses these earnings, along with self-employment income, to determine eligibility for, and the amount of, Social Security benefits for workers and their dependents. We need accurate earnings information to ensure that we credit the correct earnings to the correct individual's record. SSA passes the W-2 data to the Internal Revenue Service for matching against totals from quarterly tax returns filed by employers. Detailed instructions and information on annual wage reporting is available at SSA's national website: socialsecurity.gov/employer/

Employers are required to report wages annually for each employee. SSA encourages filers to submit W-2/W-2c reports electronically over the Internet. It is easy, fast, and free.

Advantages:
--Extended due date (electronic filers have until the last day of March versus the last day of February for paper filers)
--Immediate receipt of your file
--Ability to track your report to completion
--Completely paperless process
--Ensures faster processing of your files and posting of employees' wages

Small companies can key their reports online, while larger organizations can upload files in our electronic filing (EF) format. You can choose either option or a combination of both. All you have to do is register for one user ID and password, regardless of how many reports you send us. To register, go to ssa.gov/bso/bsowelcome.

SSNVS is SSA's online tool to help employers prevent name and number mismatches on year-end W-2s. The service allows for immediate online results for up to 10 employees per submission. If you wish to check your entire payroll (up to 250,000 employees) a file format is available for online upload with overnight results. To learn more, visit the SSNVS website at our National Employer website.

The Social Security Administration (SSA) has changed the way Social Security numbers (SSNs) are issued. We call this "randomization." SSA has developed this new method to help protect the integrity of the SSN. SSN randomization will also extend the longevity of the nine-digit SSN nationwide. For detailed information, please visit our SSN Randomization page on the SSA employer website. The page offers a link to a list of Frequently Asked Questions. You may also distribute a fact sheet to interested parties in your company about the change in assigning SSNs.

SSA/IRS Reporter
W-2 News - Subscribe Today!
SSNVS News
e-Newsletter for Small Businesses