Payroll Practitioners Learn What's New At SSA

Magnetic media is "so 20th century," said Bill Brees, employer services liaison officer with the Social Security Administration's San Francisco regional office. Brees was talking about the various reporting methods for Form W-2 during the "What's New at the SSA" workshop held during APA's 21st Annual Congress.

Compared to paper and mag media filing, electronic filing (or e-file) is less costly for employers and taxpayers, results in a lower risk of loss or damage to data, and provides an immediate "proof of filing" receipt. Employers that e-file must use 128-bit encryption for privacy, he noted.

Electronic Filing Increases

As of April 19, SSA has processed 116.2 million W-2s, said Mark Ruley, CGFM, senior financial management analyst with SSA's Office of the Senior Financial Executive. The number of electronic filers has increased from 60,878 in tax year 2001 to 109,000 for tax year 2002, he added.

The W-2 online program is ideal for small filers because no forms or tax software are required, Brees said. Employers can fill in up to 20 Forms W-2 online and, because the online forms are in an Adobe .pdf format, employees can print the employee copy of the form on plain paper, he added.

The program for W-2 online submissions has expanded from 18,362 forms filed in tax year 2001 to 126,600 in tax year 2002, Ruley said.

In order to use SSA's Business Services Online for filing W-2s using either MMREF-1 or W-2 online, an employee must first register to obtain a personal identification number (PIN) and password, Brees told attendees.

The PIN is "the electronic signature of the person (not the company) attesting to the accuracy of the data," he said, adding that the company controls how the PIN is used. SSA may consider creating levels of access for individuals who receive PINs to help employers limit access to their wage data, Bress said.

By Keith Hill