How to Avoid Potential Filing Errors and Penalties for Missing/Incorrect Names/SSNs

Employers are responsible for verifying employee Names and SSNs with SSA.

Here are recommended best practices to help avoid potential filing errors and penalties for missing/incorrect Names/SSNs.

Employee Names and SSNs should be entered into payroll system exactly as shown on the Social Security card, then verified with SSA.
If an employee has a legal name change, they will need to report the name change to SSA, apply for a new Social Security card, and provide a copy of the new card to their employer.
Once the employer receives a copy of the new card, the name can be updated in the payroll system as shown on the card, then verified with SSA.

Here is information on Name Changes:

IRS Name Changes & Social Security Number Matching Issues

SSA How do I change or correct my name on my Social Security number card?

SSA U.S. Citizen – Adult Name Change on Social Security Card

NOTE: Per IRS Instructions for Forms 1094-C and 1095-C, If you fail to file correct information returns or fail to furnish a correct recipient statement, you may be subject to a penalty. However, you are not required to file corrected returns for missing or incorrect TINs if you meet the reasonable cause criteria. For additional information, see Pub. 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs

How to Avoid-Resolve ACA Filing Errors for Reported Name SSN Mismatch to IRS Database.pdf