SSA letters should get immediate action.

The Social Security Administration (SSA) is just now mailing letters to employers that filed 2019 Forms W-2 with employee names/SSNs that did not jibe with SSA records. Because a mismatch can be caused by typos, unreported name changes, inaccurate or incomplete employer records, or other problems, the SSA letter says:

“This letter does not imply that you or your employee intentionally gave the government wrong information about the employee’s name or SSN. This letter does not address your employee’s work authorization or immigration status. Do not take adverse action against an employee, such as laying off, suspending, firing, or discriminating against that individual, just because this letter identifies a mismatch between his or her SSN or name as reported to us. Those actions could violate state or federal law and subject you to legal consequences.”

If you receive this letter, review it, then verify and correct the inaccurate data. The letter will include an attachment with instructions on how to register for and use Business Services Online (BSO) to view name/SSN mismatches and how to file a W-2C with the IRS.
 
Why “immediate” action?
To make sure your 2020 W-2s are correct so you do not have to file a 2020 W-2C.
 
IRS penalties, too
The SSA shares its data with the IRS, which can impose penalties for:  
·        failure to file timely (information returns with errors are considered information returns not filed);
·        failure to include required information on a W-2
·        incorrect W-2 information (a name and/or SSN that does not match government databases); and for
·        files on paper when required to file electronically.
 
Penalties.
 $280-$560 per inaccurate W-2 (there can be multiple penalties for the same mistake on a W-2).
 
Works Cited
SSA Letters Should Get Immediate Action, American Institute of Professional Bookkeepers. 2021, The General Ledger,Vol. 38, No. 1.