Seems like it should be a simple process: An employee gives you their correct name and SSN, and you use that on their W-2. So why does it go wrong so often? To ease your frustration, the Social Security Administration has released a list of tips to make it more likely you get names and numbers correct on the first try. Make these part of your process, and you should spend a lot less time trying to rectify mismatches:

• Verify employees are giving you their legal name as it is on record with SSA. Nicknames and shortened versions (e.g., Bob or Rob when it’s really Robert) can result in mismatches.
• If the SS card has an initial, and you’re filing W-2s electronically, you can include it on the form. If you’re filing on paper, you should use only the middle initial, with no period following it.
• You can include suffixes, like Jr. and Sr. in the sub-box of box e if you are using paper forms. They are also allowed on electronically filed forms. However, for both paper and e-forms, titles and academic degrees should not be included.
• If the employee is waiting for an SSN when you’re filing W-2s, you should input “applied for” in box d of the paper form. Electronic filers should place zeros in the record layout.

Tags: Best practices, Error prevention, Payroll, Social Security, SSNs, Tax compliance, Tax filing, Tax returns