News & Information

CCH® UNEMPLOYMENT INSURANCE — 3/20/08

SSA notes problems with current Form W-2 filings

The Social Security Administration (SSA) is currently processing tax year 2007 Forms W-2 and has identified several areas of potential concern.

Returned activation codes

The SSA has discovered a mail problem involving activation codes for those employers that recently registered for a Business Services Online User ID. This situation should not impact sending wage reports (Forms W-2) to the SSA, but may impact requests to access the Social Security Number Verification Service. The problem is that if an employer provided a three-line address, the SSA erroneously printed only two lines of the address on the envelope. The missing line made it difficult for the U.S. Postal Service to deliver the mail correctly. When the mail was returned to the SSA, it was manually corrected and the activation code was re-mailed. The correction was made as of January 16, 2008. The result is that filers may wait longer than normal to receive their activation codes.

If an employer requested another activation code prior to January 16, the second request will produce a second activation code, and the first activation code will no longer be valid because the second request automatically cancels the first request. If the first activation code letter arrives and the employer has already requested another activation code, if the employer attempts to use the “expired” activation code (not knowing that its second request cancelled the first request) three times, the SSA will automatically apply the “three strikes” rule and the second activation code also will be cancelled. The SSA recommends that the employer try each code two times only. If they both fail, the employer should not try a third time. The employer instead should wait until it receives another activation code letter before trying again.

Relocation of the Social Security Number on the Form W-2

The SSA and the Internal Revenue Service (IRS) moved the “Employee’s Social Security Number” (SSN) box on the Form W-2 from “Box d” to “Box a”. The “Control Number” box, used optionally by some employers to identify individual Forms W-2, was moved from “Box a” to “Box d”. The Form ID number (“22222”) and the “Void” boxes were also relocated to the top left corner of the Form W-2. These changes were made to enhance processing efficiency and to protect an employee’s SSN from public disclosure when employers provide Forms W-2 to their employees using a window envelope. The SSA has received numerous paper Forms W-2 with the SSN in the wrong position, which can delay processing. In addition, there has been a large number of paper Forms W-2 with the surname in an improper position. In many instances, the surname is overlapping the preprinted “22222” in the top left corner of the W-2.

The SSA reminds employers to review paper Forms W-2, especially Copy A, to ensure that they are printed accurately prior to mailing them to its Wilkes-Barre Data Operations Center.

Calls to the employer 800 number

The SSA's call center personnel receive more calls in January and February than they are able to accommodate within a reasonable wait time. Employers can visit the SSA's website at www.socialsecurity.gov/employer and select the “Before You File” and/or “Electronic W-2 Filers” sections for answers to many of their questions. Employers can also visit “Frequently Asked Questions” at http://employer-ssa.custhelp.com.

Registration for users from a U.S. territory

New users residing in a U.S. territory who need to register for the first time should call 1-800-772-6270 to speak with an Employer Customer Service Representative. For TDD/TTY call 1-800-325-0778. Once the employer has completed the registration over the phone, it can return to the “Business Services Online Welcome Page” (www.socialsecurity.gov/bso/bsowelcome.htm) and select “Complete Phone Registration”. The SSA is currently working to update the online registration process (Social Security Administration W-2 News Update, January 31, 2008).

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