Purpose

To explain OSC’s Social Security Number and Name reconciliation process and to provide agencies with instructions for resolving discrepancies.

Affected Employees

Employees who appear on the Control-D NPAY752 Report (Social Security Number Verification Report)

Effective Date(s)

Immediately

Background

Pursuant to Internal Revenue Service Publication 15 (Circular E), employers are required to obtain each employee’s name and Social Security Number and to enter them on the employee’s Form W-2.

This requirement also applies to resident and nonresident alien employees.

OSC Actions

OSC will create a file of employees with taxable wages at the end of each quarter and compare that information with Social Security Administration (SSA) records using the SSA’s Social Security Number Verification Service (SSNVS).

The Control-D NPAY752 Report will then be created identifying discrepancies per SSA records. The NPAY752 Report contains the following information:

• Employee’s Social Security Number
• Employee’s Name
• Reason Why SSN Not Verified.  Reasons provided by SSA may include:
  • SSN not in file (never issued to anyone)
  • Name does not match; Date of Birth and gender code not checked
  • Other SSN
  • Deceased
  • Contact the SSA office for more information

Note: A message will be posted to the PayServ Bulletin Board notifying agencies when the Control-D NPAY752 Report is available for review.

Agency Actions

Agencies must review the NPAY752 Report and take the following actions to resolve any discrepancies identified between PayServ and the SSA’s system.

For employees identified with a Reason Why SSN Not Verified of:

"SSN not in file (never issued to anyone):"

• Verify that the employee’s correct Social Security Number has been entered in the National ID field in Personal Information as follows: Workforce Administration>Personal Information>Modify a Person

On the Biographical Details tab, the National ID field must be populated with the employee’s Social Security Number.

OR

"Name does not match"; "DOB and gender code not checked" or "Other SSN":

• Send a notification letter to employees who appear on the NPAY752 Report with this reason requesting that the employee provide proof of updated information to the agency Personnel or Payroll Office as soon as possible. (A sample letter which agencies may use is provided.) Agency payroll offices should retain a copy of each letter and any response from employees for four (4) calendar years in the event of an OSC review and/or IRS audit.
• If an agency determines that the employee has recently changes his or her name and has not yet obtained a new card from the SSA, provide the employee with Form SS-5 for completion and submission to the SSA.
• Verify that that the Social Security card presented by the employee is the most recent card issued by the SSA. If the information reported in the State payroll system does not match the information on the Social Security card, the agency must enter the correct information in PayServ as soon as possible.
• If the employee believes that the Social Security information reported in the NYS payroll system is correct, instruct the employee to contact the SSA to verify and correct their records. Agencies should document and retain this information for four (4) calendar years in the event of an OSC review and/or IRS audit.

OR

"Deceased:"

• If an employee is listed on the NPAY752 Report with this reason, verify that the employee’s date of death has been entered in the Date of Death field in Personal Information as follows Workforce Administration>Personal Information>Modify a Person. On the Biographical Details tab, the Date of Death field must be populated using the format of MM/DD/YYYY.
  
  If the Date of Death field is blank, obtain a copy of the employee’s death certificate and update the Date of Death field as soon as possible.
  
  NOTE:
  Agencies must report date of death information in PayServ for all employees, including those who previously separated from State service to ensure that any future payments due the employee are taxed and reported accurately.

Questions

Questions regarding this bulletin may be e-mailed to the Tax and Compliance mailbox.