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IRS Announces Penalties for Incorrect Forms W-2, Wage, and Tax Statement


Pen on an IRS Form W-2 Wage and Tax Statement

Household employers will incur significant incorrect Form W-2 penalties if there are name and Social Security number mismatch problems.

The Social Security Administration returns incorrect forms W-2 (name and Social Security number mismatch problems) to employers for corrections. The Internal Revenue Service assesses penalties to household employers filing Forms W-2 with mismatched names and Social Security numbers. A mismatch occurs when the name associated with an SSN (Social Security number) does not match the agency’s records. Incorrect Form W-2 penalties are calculated at a rate of $100 for each incorrect form. The Social Security Administration has been returning forms W-2 with name/number mismatch problems to employers for corrections for the last several years, but there is now new W-2 tax form information that employers must be wary of.

What household employers should do to avoid incorrect Form W-2 penalties

Household employers, whether of nannies, housekeepers, senior caregivers, or household managers, etc., are encouraged to confirm that their employee’s name on file with HomeWork Solutions exactly matches the name as printed on the employee’s Social Security card. Prevent any potential IRS penalties and headaches by proactively verifying that your employee’s information is correct in your HomeWork Solutions account. Simply log into your HomeWork Solutions’ secure portal and navigate to the employee section.

How household employers can validate employee Social Security information

Household employers can verify the name and Social Security Number (SSN) match for up to five employees by calling the Social Security Administration’s (SSA) toll-free number at 800-772-6270. When calling, be prepared to provide your name, Federal Employer Identification Number (FEIN), and a full telephone number including area code. The SSA will then request the employee’s name(s), SSN(s), date(s) of birth, and gender for current or former employees you need to verify. You may also do this online by using SSA’s The Social Security Number Verification Service on the Social Security Administration website. Household employers can verify up to 10 names and SSNs (per screen) online and receive immediate results.

How HomeWork Solutions can help

As always, we’re here to help. If you have any questions about incorrect w-2 penalties or other household employment issues, please request a free consultation or give us a call at 1-800-626-4829