Fix Explained For SS Errors on W2 Forms

January 31, 2003 ( - HR officials who find out that an employee's social security number isn't correctly recorded on a W-2 form can withhold tax from the person's paycheck at the highest rate and then demand a new W-4 from the employee.

That, according to an announcement from the American Society of Payroll Management (ASPM) is the latest clarification from the Internal Revenue Service (IRS) on steps employers can take to avoid IRS penalties for bad Social Security numbers, according to HR news.

ASPM said IRS would hit employers with a $50 per W-2 penalty for all W-2s with mismatched names or society security numbers. ASPM said an employer could produce the new valid W-4 to avoid the penalty. More information is available from the  Social Security Administration Web site.