Incorrect identification numbers for employees continues to be the number one problem faced by employers, according to the IRS. An incorrect identification number may result in a notice to you from the IRS requiring you to do back-up withholding.

The Social Security Administration has a website that allows you to verify that a new employee’s social security number (SSN) is correct. You can verify up to 10 names and SSNs online and receive immediate results. This option is ideal for new hires.

You can also upload batch files of up to 250,000 names and SSNs and receive results the next government business day. This option is ideal if you want to verify an entire payroll database or if you hire a large number of workers at a time.

While the service is available to all employers, it can only be used to verify current or former employees and only for wage reporting (Form W-2) purposes. Check out this feature on the Social Security Administration’s website at www.socialsecurity.gov/employer/ssnv.htm.