Tag Archives: W-2 input

Are retirement amounts recalculated at FRA?

Posted on by

Q: Is there a review of your Social Security retirement amount once you reach full retirement age, even if you started benefits earlier?  For example, could earnings since you started Social Security increase the original amount? 

A: Starting reduced Social Security retirement benefits when younger than full retirement age (FRA) results in permanently reduced benefits. Your retirement amount will not increase just because you have gotten older, although you do receive cost-of-living increases.

However, two routine reviews can increase your original benefit amount. Both involve working while receiving Social Security retirement.  

First, when you reach full retirement age (FRA), there is a review of your existing benefits to be sure that all reductions for age applied. Benefits would increase for months that a person did not actually receive benefits because of work.  

For example, consider a person receiving Social Security retirement and working at the same time. If his or her earnings were low enough to permit ongoing payment of all monthly benefits, the review would not change the Social Security benefit because payment was received for all months. However, say earnings were high enough to prevent benefit payment for five months. Here the review at full retirement age would result in a benefit increase by the amount of those five months.  

A second review, also automatic, does not have to wait until full retirement age. Benefits are routinely reviewed to determine if earnings from new work activity can replace years previously used in computing a benefit amount. 

New and higher earnings on your record can replace one of the 35 years used to compute your original amount. When this happens, existing amounts are automatically recalculated and might increase benefits. Increases from this review can take place before full retirement age. This automatic review usually occurs in the fall, once employer W-2’s are all processed. For example, increases in benefits due to 2011 earnings were paid in November 2012, retroactive to January 2012. 

Other examples of these two reviews are in the booklet, How Work Affects Your Benefits, SSA publication 05-10069. Annual earnings test information for 2013 is also in this publication.

 

Employers – You still have time to use BSO for 2012

Posted on by

Has your business registered to use the free Social Security Business Services Online (BSO) yet?  

As long as you register in time to meet your W-2 reporting deadlines, there is not a firm BSO registration deadline. Allow time for the process as well as how hectic this time of year can be. Register now. 

Several posts during September and October, easily reachable through the Business Services Category on my Areavoices homepage, discussed available BSO services and registration.  

Services include two ways to electronically file W-2s plus the Social Security number verification service (SSNVS), for online verification of employee Social Security numbers.

To use Business Services Online, you or the appropriate people from your firm must register. Registration instructions are at http://www.ssa.gov/employer/ in the Handbooks, Tutorial & Videos section. Registration is not difficult. As one of several security measures, those registering are asked for the business EIN number as well as their own name, Social Security number, and other information. A User ID and PIN is created for each person registering, not one for the business.  

BSO is growing. Of W-2’s for 2011, approximately 185 million (85.5 percent) were online. About 31.8 million (14.5 percent) were paper. Electronic W-2 transmission reduces your business paperwork, and provides you with an additional W-2 processing month. Were your W-2s electronic or paper?

BSO provides two methods to electronically transmit W-2s. Your business can create and transmit a data file from existing payroll software or use a Social Security provided W-2 template (W-2 Online). You can print copies suitable for distribution to employees with the SSA W-2 template.

Think your business is not large enough to use Business Services Online? Think again. For 2011, the average business using the W-2 Online template sent Social Security 5 W-2s.

When used for new employees, the Social Security Number Verification Service (SSNVS) avoids having incorrect employee Social Security numbers, saving your business additional workloads especially if the person was only a temporary hire. In 2011, the SSNVS was used 2.9 million times, with 105.8 million SSNs checked. Did your business make use of it?

 According to the BSO welcome page, beginning December 10, 2012, BSO will begin accepting W-2s and W-3s for Tax Year 2012. 

Has your business registered yet to use the free Social Security Business Services Online. You still can. Register now. Transmit your 2012 W-2s electronically. 

Have Business Services Online questions? Ask.

Employers – you can transmit W-2 data electronically

Posted on by

Recent posts about the free Social Security Business Services Online (BSO) covered BSO registration and the Social Security Number Verification Service (SSNVS). This BSO series ends today with submitting W-2 information online.  

Firms performing payroll services for multiple employers can register once to use BSO services for all clients. 

In addition to saving your business time and money in reduced handling and paperwork, with electronic W-2 transmission you have more time to provide W-2 information to Social Security. Unlike the paper W-2 deadline at the end of February, if submitting electronically, the deadline for submission to Social Security is March 31 (or on the following workday if this date falls on a Saturday, Sunday or holiday). Employee copies of the Form W-2 still must be given to employees by January 31 (or on the following workday if this date falls on a Saturday, Sunday or holiday).

There are two basic ways to file W-2’s online depending on your payroll system. 

With many commercial payroll software’s, you can create a data file for transmission to the Social Security Administration (SSA). Free SSA BSO software allows an accuracy check of your data before actually uploading the wage file to Social Security.

A second method is to use a provided W-2 template to create a transmission file of up to 50 Forms W-2 at a time. You can print copies suitable for distribution to employees, and additional W-2’s can be completed as needed. No special software is required. 

There is also BSO software for online W-2c’s, if needed. 

During January 2012, the third of three Social Security webinars about Business Services Online described online filing of W-2 and W-3’s. Although some website images have since changed, the basic process remains the same. Other tutorials are in the Handbook, Tutorial & Video section at http://www.ssa.gov/employer/. You might find these useful.

Personal assistance with SSA Business Services Online is available at http://www.ssa.gov/employer/. Note the customer support link at lower right of that page. This is specifically to help with business service online topics, not individual Social Security benefit questions.

Employers – you can verify employee SSN’s online

Posted on by

Today’s post is about the Social Security Number Verification Service (SSNVS) a useful tool included as one of the Social Security Business Services Online (BSO).  

To use Business Services Online, you or the appropriate people from your firm must register. Registration instructions are at http://www.ssa.gov/employer/ in the Handbooks, Tutorial & Videos section. With one registration, firms that handle payroll services for multiple employers can use SSNVS, and the other Social Security business services, for all clients.

Last week I wrote about the BSO registration process, including security features. For SSNVS, an additional security feature exists. Before SSNVS can be used, an activation code is mailed to the employer address as shown on Social Security records. This activation code must be input before SSNVS can be used.

You can use the Social Security Number Verification Service two ways:  immediately verify the SSN of an employee online or complete an overnight verification for a large number of employees. 

Immediately verifying the Social Security number (SSN) of a newly hired employee online with SSNVS saves your business money and time. If the provided SSN does not match, the employee can contact Social Security to correct the record so that your business W-2 wage reports process successfully. This is especially valuable in areas of high employee turnover, including the hospitality industry. Even if the employee is long gone by year’s end, you know the employee’s SSN is correct and that your wage report will be accurate.

SSNVS is to verify the SSN of current or former employees for wage reporting (W-2) purposes. Failure of a SSN to match can occur for many reasons. It does not imply that false information was intentionally provided nor does a mismatch make any statement about employee immigration status. 

During December 2011, the second of three Social Security webinars about Business Services Online described the Social Security Number Verification Service. Although some website images have since changed, the basic process remains the same. You might find it useful. 

Many employers ask to see the Social Security card of new employees.  Do you really need to see the card? 

More will be posted about Social Security Business Services Online. For more information now, go to http://www.ssa.gov/employer/.

Employers – Registration Information for SSA Business Services Online

Posted on by

On September 24, I posted information about Social Security Business Services Online (BSO). Once registered for these free services, businesses can electronically transmit W-2 data and verify employee Social Security numbers online. Firms handling payroll services for multiple employers just register once to use BSO for all clients. 

On that previous post, I included an image of the Employer W-2 Filing Instructions & Information page at http://www.ssa.gov/employer/. The link remains the same, but the page appearance changed yesterday. With other changes, the customer support link is now at the lower right of that page. This is specifically to help employers with wage reporting and other business services, not individual Social Security benefit questions. 

To use Business Services Online, you or the appropriate people from your firm must register. Registration instructions are at http://www.ssa.gov/employer/ in the Handbooks, Tutorial & Videos section. 

Registration is not difficult. Be aware that it includes information about both the business and the person registering. Those registering are asked for the business EIN number as well as their own name, Social Security number, and other information. A User ID and PIN is created for each person registering, not one for the business.  

This is a security feature for your business. As part of the process, personal information is verified against Social Security records, including verification that the person was previously reported as an employee of the business. If needed, methods exist that allow a newly hired employee to register. 

Within the registration process, different people can be provided the ability to use separate portions of Business Services Online. For example, a larger business might allow a person involved with hiring to verify the Social Security number of new employees while allowing a person working with payroll to electronically transmit W-2 data. 

During November 2011, the first of three Social Security webinars about Business Services Online described the BSO registration process. Although some website images have since changed, the basic process remains the same. You might find it useful. 

More will be posted about Social Security Business Services Online. For now, go to http://www.ssa.gov/employer/ for more information.

Attention Employers – Social Security Business Services Online

Posted on by

Businesses of all sizes can plan now to reduce 2012 wage W-2 reporting paperwork. Register to use Social Security Business Services Online. There is no charge.  

Once registered, your business can electronically transmit W-2 data and verify employee Social Security numbers online.  

Does your firm handle payroll services for multiple employers? With one registration, you can use the Social Security business services for all of your clients. 

More will be posted about SSA Business Services Online. For now, go to http://www.ssa.gov/employer/ for details and instructions. Note the customer support link at lower left of that page. This is specifically to help employers with wage reporting and other business services, not individual Social Security benefit questions.

What’s in a name?

Posted on by

Q: For most of my life I’ve used a nickname rather than my actual birth name. Will this be a problem when I file for SSA retirement?  

A: Using a nickname when filing for Social Security retirement or other SSA benefits will probably not be a problem but it might not be a good idea. This depends on the name used for your other official records as an adult. 

The primary purpose of your Social Security number (SSN) is to keep accurate track of your earnings to ensure that you and your family get all the Social Security retirement, disability, and survivors coverage you are entitled to. The agency recommends that the name on your Social Security number card be the same as the name you officially use at work for payroll purposes. Usually this is your given name even if your family, friends and co-workers routinely use a nickname.  

When filing for Social Security retirement, whether by online retirement application or directly with a SSA representative, a computer comparison matches information on the application with your SSN record, including any spelling variations or actual name changes over the years. As long as the comparison matches, application processing continues.

Usual practice when issuing an original Social Security number is to use the legal name shown on the presented evidence. While not recommended, having your legal name on your birth certificate and nickname on the SSN card need not create a future problem if the record clearly shows that both names are you. Many nicknames are commonly associated with given names and are not a concern. Easy examples are William / Bill and Elizabeth / Beth / Liz. Using a middle name instead of the first name is also routine. Some nicknames have no connection to your actual name. Even if most people have called you “Runner” since high school, I would not use it on your application for benefits. 

Consistency is very important with today’s computer records. The name on your Social Security retirement will eventually be on your Medicare card. Future insurance claims can be delayed if that name does not exactly match the name used by your medical providers. Even variations of the same name, such as John and Jon, can create problems. This is not a Social Security issue but is important. 

Should you need to, correcting your name with Social Security is quick, easy, and free. Follow the “Get or replace a Social Security card” link from the TOP SERVICES section of www.socialsecurity.gov.  A simple decision path provides instructions.  

Check your personal Social Security record of earnings with your online Social Security Statement. In addition to retirement, disability and survivors estimates, the Statement shows your record of earnings. Social Security recommends that you review this annually. If there happens to be a problem, contact your local SSA office to correct it.

Look it up – SSA website FAQ’s revised

Posted on by

Finding information on the Social Security Administration website became easier this week with changes to the website Search and Frequently Asked Question (FAQ) tools.

You will find the Search engine and a FAQ link at top right of the home page with a second FAQ link towards the bottom right.

Aside from the Search and FAQ tools, there are links to detailed program information directly from the home page. These go to information about SSA retirement, survivors and disability programs as well as Supplemental Security Income (SSI), Medicare and SSA electronic business services.

Concerning Search and FAQ’s, if you know your area of interest, I would start with the FAQ link. You will come to a selection of clearly identified topics including Social Security Card, Retirement and Employer Wage Reporting.

Within each of these main topics, you will find subtopics and then FAQ’s specifically about them.  

Subtopics in the Retirement section include Apply for Retirement, Eligibility/Computation of Benefits, Working While Receiving Benefits and Spouse/Survivor Benefits. Just in the Retirement topic alone, this morning there were 118 FAQ’s to help you. 

The Search engine functions like those on most websites. To try it out, this morning I searched for the answer to one of the most popular questions I receive:  Are my own benefits reduced if a spouse receives Social Security through my record?  I typed in “will ben to wife lower mine?” and the proper FAQ immediately came up as the second result. Regular readers will know the answer to this question. If you do not, now you know how to look it up. 

Reminder: the official Social Security website ends in .gov. If it’s not .gov, it’s not Social Security.

 

Business Services Online webinar series now available

Posted on by

The third Social Security Business Services Online (BSO) webinar is online and can be viewed anytime at your convenience.   Broadcast on January 12, 2012 , this final webinar of the three part series provided step-by-step instructions for electronic W-2 wage reporting.   

The  “Business Services Online (BSO): The Joy of Using BSO” series is now complete.   All three webinars can be viewed for free at http://www.socialsecurity.gov/webinars/bso.html.  

Part I, taught the BSO registration process and Part II showed how to use the Social Security Number Verification Service (SSNVS).  Part III covered:

  • The advantages of Online W-2 and W-3 Filing,
  • How to report wages to Social Security, create and resume Forms W-2 and W-3 online,
  • How to process up to 50 W-2s and receive immediate feedback if the names and Social Security numbers do not match, and
  • How to download submitted reports.

More Business Services Online information is at www.ssa.gov/bso/bsowelcome.htm and www.socialsecurity.gov/employer.  You can still register and use BSO for 2011 W-2 reporting.

The current edition of W-2 News, the electronic newsletter for employers who submit W-2s to Social Security, is at http://www.socialsecurity.gov/employer/w2news.

What’s your name?

Posted on by

Q:  I am getting married later this year and have not decided yet whether to change my name or not. While I like the idea of sharing my future husband’s name, my professional identity is well established so I might not make any change.  As a compromise, I might hyphenate both names together.  For Social Security purposes, does it matter what name I eventually decide on?

A:  While the name you decide to use is up to you, the name on your Social Security number (SSN) card definitely matters.  The primary purpose of your Social Security number is as the way to keep accurate track of your earnings to ensure that you and your family get all the Social Security retirement, disability, and survivors coverage you are entitled to.    

Your name on your Social Security card should be the same name that you will use for work.  If you continue to use your existing name consistently throughout your working years, there is no need to contact Social Security.  However, if you decide to change your name, whether completely or to a hyphenated version, definitely change your Social Security number card to match your new work name. 

You receive a SSN card with your correct name when Social Security records are updated.  Once received, remember to have your employer update payroll records to show your new name.  Have your employer report your earnings to Social Security using exactly the same name as on your SSN card. 

A secondary concern is that any Federal income tax refund due you could be delayed if Internal Revenue Service (IRS) and Social Security records do not show the same name and Social Security number.

Correcting your name with Social Security is quick, easy, and free.  Follow the “Get or replace a Social Security card” link from the TOP SERVICES section of www.socialsecurity.gov.  A simple decision path provides instructions.

As you would expect, evidence to correct your name includes a recently issued document as proof of your legal name change.  Examples of documents Social Security can use include a marriage certificate, divorce decree, Certificate of Naturalization showing a new name or court order for a name change.  Your documents are returned. 

Download and complete the application (Form SS-5) and bring or mail it with needed evidence to Social Security.   Local SSA offices handle this work in most of the country.  In some areas, including around the Twin Cities, special SSN card centers are set up.  Website instructions provide the correct location based on your zip code.