Preparing Your Tax Return(s) and
Information Returns
Common Errors in Preparing Returns
Errors Common to Paper Form W-2 Reports:
- Prior year tax form or prior year Social Security wage base maximum
used.
- Unscannable reports. Reports that are not scannable by the SSA's
optical equipment cost more to process and are more subject to error. See specifications
in IRS Publication 1141.
- Failure to file Copy A of Form W-2 with SSA.
- Using titles before and after the name, misspelled names or
nicknames.
Errors Common to Magnetic Media Filers:
- Failing to file Form 6559, Transmitter Report and Summary of Magnetic
Media, with each magnetic media report. Form 6559 or a copy of the form helps the SSA
identify the employer (or transmitter), the type of report and the year being reported.
Multi- reel filers should provide a copy of Form 6559 for each reel.
- Omitting dollar totals on reports. SSA uses dollar totals to
determine if the report is in balance and, if not, to show where the error may be found
and corrected.
Incorrect or missing Employer Identification Number (EIN):
- The SSA and IRS keep employer records by EIN. Reports received with
the wrong EIN's may be credited to the wrong records. The IRS may assess penalties for
failure to file correct reports if your EIN is either missing or incorrect.
Incorrect Employee Name or Social Security Number (SSN):
- To avoid costly errors, update your payroll records by asking
employees to verify their name and SSN before you close out your books and prepare W- 2's.
Weblinks:
www.ssa.gov/employer