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IRS 1094 Participant errors with upload


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Anyone else get a pretty large number of errors related to SSN & Employee name match for the 1094 reporting? It is really strange that IRS would reject employees Name/SSN that were not exactly the way it is on their Social Security card. So someone like Samuel Smith should have been Samuel Michael Smith on 1095. I don't recall anything saying that an employee needs to have their exact name in any employer system to be the same on their SSN card. So a abbreviated middle name may not be possible in the future because it causes errors or even the suffix like Jr. or II, etc could even be another problem. How are you approaching this problem if you received the errors back that SSN and Name do not match their records. How are you going to collect the data from the employees? A simple response would be I9 (unless employee provided passport/DL instead), but for so many errors, it will take a very long time to fix.

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  • 2 weeks later...

There is another thread discussing this issue and I have tried since the beginning of June to try to get somebody at the IRS to discuss this issue without much success. However, I believe you are mistaken on how the IRS is verifying TINs for electronic submissions.

Please refer to page 17 of publication 1586 on how TINs are verified. For example, my name is Ryan Patrick Moulder. The only thing the IRS system would be looking at is "MOUL" and then verifying if my SSN was listed in the TINs for the "MOUL" combination. Theoretically, my brother's employer could list his name which would be searched as "MOUL" with my SSN and no error message would be reported because my SSN would be included in the SSN subset of numbers for "MOUL".

I am working on another article on the issue because I have learned a lot about the issue since my last article on the subject earlier this month. http://www.healthcare-attorneys.com/dont-accept-accepted-with-errors-how-to-handle-incorrect-tins/ I will be sure to share it once it is complete as I think a lot of people are struggling with this issue.

I hope this helps.

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Name mismatches have been around a long time in payroll/W-2 circles. I am not sure that they are using the same algorithm for this mismatch, but it is well known in payroll circles that you want the name to exactly match what is on the SS cards/records. There is a $50 per mismatch penalty. Usually the way it is solved is payroll requires a copy of the SS card at time of hire. Our system however only keeps Middle Initial and that is all that is transmitted on the W-2. It would be a nightmare if they are requiring full middle names.

Is there any way for you to do an internal audit of payroll/W2 name versus the name that you used for the 1095? Or are you pulling from the same name field and the algorithm is mismatching a whole lot of those? Do you know if when entered HR/payroll input the SS name?

Otherwise, I don't see much choice than doing an internal audit and requiring employees to bring in a copy of their SS card to check against. Or just those that got the mismatch. The good thing is once you have good data, you shouldn't have another mismatch.

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