W-2 Filing ID Theft

[geekgirldany]

Client hired an employee who provided a SSN but it was obtained by ID theft. Employee worked for three weeks and quit. Cops came to employer's office and that is how he found out it is ID Theft.

I am trying to figure out how to report the W-2 for this employee. My only thoughts are to file the W-3/W-2 with a letter stating that there is no number because employer became aware it was incorrect.

Has anyone had to deal with this?

Thanks
DAny

[ChEAr$]

This happens sometimes, e.g. employer doesn't have SSN when employee hired and when tries to get it,employee or subcontractor says "I ain't giving my F****88g number to nobody; then walks out.

Herebouts we simply reclassify wages as casual labor but still take a deduction for the amount paid. Same with subs.
In case of an audit, employer simply eats the deduction.

And yes, I do document client's decision on said treatment for my files.

[Koss]

Missing SSN

The employer's instructions for Form W-2 say that if the employee does not have an SSN, you can write in the words "applied for." I know that's not exactly what happened here. But the fact is that the employer does not have the employee's SSN. I'm not sure the reason is all that important. The instructions also say that if you are filing Form W-2 electronically, instead of the words "applied for," you simply put in all zeros.

BMK

[ChEAr$]

The employer's instructions for Form W-2 say that if the employee does not have an SSN, you can write in the words "applied for." I know that's not exactly what happened here. But the fact is that the employer does not have the employee's SSN. I'm not sure the reason is all that important. The instructions also say that if you are filing Form W-2 electronically, instead of the words "applied for," you simply put in all zeros.

BMK

May I pick a nit, Burton? (grin

I would be wary of using the "applied for" if indeed it wasn't the case. Maybe something like.. "REFUSED"?

[David1980]

Technically, I think the instructions say to enter Applies For / or all 0 for "If the employee has applied for a card but the number is not received in time for filing".

[geekgirldany]

Thank you all for posting.

Not sure about using "applied for". I suppose I could put "refused" in the box. Instructions say when using "applied for" you are suppose to file a corrected return later.

Harlan, I could change it over to subs. It was about $250 in wages. Not much but the 941 was filed and taxes paid back on the 1st quarter. I could do an amended 941 but would rather not.

Will keep on thinking about it.

[ChEAr$]

Thank you all for posting.

Not sure about using "applied for". I suppose I could put "refused" in the box. Instructions say when using "applied for" you are suppose to file a corrected return later.

Harlan, I could change it over to subs. It was about $250 in wages. Not much but the 941 was filed and taxes paid back on the 1st quarter. I could do an amended 941 but would rather not.

Will keep on thinking about it.

Oh yeah. 250$ is low enough to reclassify it. In a heartbeat.

[joanmcq]

It's why you get the W-4 or W-9 BEFORE you pay them. And in the case of an employee, you need the W-4 before they start.

[geekgirldany]

He did get a W-4, I-9, and made a copy of the SS card before he paid the employee. The employee had made up a fake SS card. He had stolen a woman's info and was doing what ID Thefts do. He is in jail now.

I might just go ahead and amend the 941 since it is a lower amount.... thanks Harlan.