What is the SSA/IRS Employer Earnings Reconciliation
Process?
The SSA/IRS Earnings Reconciliation Process compares employees' wage
data submitted to IRS against employees' wage data submitted to SSA.
This data is submitted to both agencies by employers, their representatives,
third parties and agents.
When more wages were reported to IRS than to SSA, then SSA is concerned
that employees' earnings are not credited correctly to the agency's records.
SSA examines some of these cases and makes an effort to resolve the difference without
contacting the employer.
When an effort to resolve the discrepancy is unsuccessful or a resolution is not possible without employer assistance, SSA sends a
notice and questionnaire to the employer, requesting the earnings data
needed to resolve the case. If SSA does not receive a response after 120 days, the
employer is sent a second notice. When no response is received after
the second notice, IRS is responsible for contacting the employer and may
impose penalties, if necessary.
If you are contacted by IRS or SSA about an Earnings Reconciliation issue
go to: What Employers Need to Know about the SSA/IRS Employer Earnings Reconciliation Process.