How Are Social Security Numbers Verified?

Employers may wish to incorporate a verification of employees' Social Security numbers (SSNs) into the payroll processing procedures of new hires. Recording correct names and SSNs on IRS Form W-2, Wage and Tax Statement, is key to successful processing of annual wage reports. Not only does it save the employer and the Social Security Administration (SSA) processing costs, it also allows SSA to properly credit employees' earnings records, which is important for determining employees' future Social Security benefits.

Automated verification service. Verifying employees' SSNs can be accomplished with the SSA's automated Social Security Number Verification System (SSNVS). Via the Internet, employers can enter up to 10 names and SSNs and know if they don't match within seconds. When there is a mismatch, the system will provide an explanation of why it doesn't match. SSNVS also will let employers know if the name or SSN are recorded as a person who is deceased. It will not, however, provide an alternate SSN when there is a mismatch.

Although SSNVS is limited to 10 names and numbers, employers do not need to log off the system when they receive their report of mismatches. Instead, they can continue to enter 10 more names and numbers.

To be able to use SSNVS, employers must register on SSA's Business Services Online (BSO) website (http://www.socialsecurity.gov/bso/bsowelcome.htm). Once registered, employers will receive a password and PIN, and an activation code is sent to the address listed on the company's Form 941, Employer's Quarterly Federal Tax Return. Within 60 days the account must be activated or the activation code will expire. If an employer already has a PIN and a password, go to the BSO and sign up for SSNVS as one of the "roles" that are allowed by that password and PIN.

If an employee's name and number don't match, employers should ask to see the employee's Social Security card and check if the name and number on the card are the same as the ones submitted. If they are the same (e.g. there were no "typos", employers should ask the employee to contact the SSA to fix the discrepancy.

Purpose. The SSNVS is to be used to ensure the SSN records of current or former employees are correct for the purpose of completing IRS Form W-2, Wage and Tax Statement. The system is not to be used to verify SSNs of potential new hires or contractors.

Other alternatives.Employers can still verify up to five names and SSNs by telephone at 1-800-772-6270. In addition, employers can submit a paper listing of 50 or fewer names and SSNs to their local Social Security office or send a file of the names and SSNs after registering with the SSA.