Are You Truncating Your Employee’s Social Security Numbers?

July 16, 2019 at 9:33 am Leave a comment

It’s not often I put “IRS” and “commonsense” in the same sentence but on July 3rd the Internal Revenue Service finalized commonsense regulations giving employers permission  to truncate Social Security numbers on W-2 forms.

Employers are required to provide to the Social Security Administration a copy of each W-2 they provide to their employees. This is the form that tells you how much money you earned.   Before these  July changes,  IRS regulations explicitly prohibited employers  from providing this information using a Truncated Taxpayer Identification Number. Who knew? Now employers can truncate but they don’t have to.

Even this arcane and esoteric measure is not without its critics. According to the IRS, tax preparers are concerned that it will increase the instances of information being recorded with the wrong SSN and other groups argue that the change should be mandatory. I will not even pretend to have an opinion on that one but I do believe that this is something that is worth looking into To me, anything that minimizes the use of a complete social security number is worth looking into.

Former CEO indicted

Late last week former Melrose CEO Alan Kaufman was indicted on federal charges of bribery in relation to favorable loans and marketing deals he allegedly entered into with a member who gave him among other things lavish vacations, and free housing. Some news speaks for itself.

Entry filed under: HR, Regulatory. Tags: , .

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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