Addendum to the Supporting Statement - 0432

Addendum to the Supporting Statement

Forms SSA-L-93- SM, SSA-L-94-SM, SSA-95-SM and SSA-97-SM

Missing and Discrepant Wage Reports Letters and Questionnaires

26 CFR 31.6051-2

OMB No. 0960-0432

Revision to the Collection Instrument

Changes to both the SSA-L-93-SM and SSA-L-94-SM:

• Change #1: We are adding the new language “Household Employment Taxes” and deleting “Form 1040.”

Justification #1: Removing “Form 1040” and replacing it with “Household Employment Taxes” will assist in reducing employers inadvertently sending personal tax information on a regular Form 1040 for reconciliation cases. Form 1040 has different schedules, so naming the document decreases the likelihood of receiving the wrong form.

• Change #2: We are adding the new language “These totals must equal…” on page 1 of the letters.

Justification #2: We are including this new language to emphasize the wage amounts reported to us should equal what the employer reports to the Internal Revenue Service (IRS).

• Change #3: We are deleting the language included under the section What We Found.

Justification #3: We are displaying this information under About the Questionnaire.

• Change #4: We are bulleting the information included under What You Should Do.

Justification #4: We are revising the format to improve clarity and readability.

• Change #5: We are deleting the language “SSA no longer accepts magnetic media submissions” under the Note.

Justification #5: We included this information in earlier versions of the notice; however, it is no longer necessary for us to bring this information to employer’s attention.

• Change #6: We are adding the new language “original and corrected” under the Note.

Justification #6: We are adding this language to emphasize that employers can file both their original and corrected versions of wage reports electronically.

• Change #7: We are adding the new language “…and click on “Reconciliation” for more information” under About the Questionnaire.

Justification #7: We are adding this language to direct the employer to the reconciliation information.

• Change #8: We are revising and adding language under the section If We Do Not Receive This Information to improve clarity. We are adding the new language “…or fail to respond to our request.”

Justification #8: We are adding this new language to alert the employer that we will contact the IRS if we do not receive a response to our reconciliation notice. This will encourage the employer to respond more timely.

• Change #9: We are changing the language under If You Have Any Questions:

Old language: between 7:00 A.M. and 7:00 P.M. Eastern time, Monday through Friday

New language: Monday through Friday, 7:00 a.m. to 7:00 p.m., Eastern Time.

Justification #9: We are making this change to have the language comply with how we show it in other agency notices.

Changes to the SSA-95-SM only:

• Change #10: We are adding the new language “Social Security and/or Medicare” to the first line under the heading.

Justification #10: We are making this change to have the language comply with what is in other reconciliation notices.

• Change #11: We are adding the new language “Household Employment Taxes” and deleting “Form 1040.”

Justification #11: Removing the wording “Form 1040” and replacing it with “Household Employment Taxes” will reduce employers inadvertently sending personal tax information on a regular Form 1040 for reconciliation cases. Form 1040 has different schedules, so naming the document decreases the likelihood of receiving the wrong form.

• Change #12: We are revising the language under the Caution:

Old Language: Caution: You must identify this as a reconciliation file when you submit it! Enclose the electronic receipt showing the Wage File ID (WFID) as proof of filing.

New Language: Caution: If you are filing electronically, be sure to check the box indicating the submission is in response to a reconciliation notice. When you return this questionnaire, include a copy of the Business Services Online (BSO) receipt showing the wage file identifier (WFID) as proof of filing.

Justification #12: We are modifying the language to provide additional and clearer instructions for employers on how to submit wage report files in response to a reconciliation notice. The revised language provides clarification assisting the employer from taking two separate types of actions at the BSO site.

• Change #13:
  
  

• We are changing the language in item 2 of the Check and Complete section:

Old language: Sending SSA an electronic file.

New language: Enclosed is a copy of the Business Services Online (BSO) receipt showing the wage file identifier (WFID) as proof of filing.

• We are deleting the Caution under item 2. It is not applicable since no filing is necessary.

Justification #13: We are making this language change to coincide with the new language included under the Caution section that requests a copy of the BSO receipt be included as proof of filing.

• Change #14: In Item 5 of the Check and Complete section, we are deleting the reference to attaching Form 1099 or 1040 to a Schedule SE or Schedule C. We also are adding another option under item 5.

Justification #14: Attaching a Form 1099 or 1040 to the Schedule SE or Schedule C is no longer necessary. We are also including the option to indicate that the self- employed individual had employees working for him. We are now covering all the possible options for the self- employed individual.

• Change #15: We are changing the language under Information About the Data You Send SSA:

Old language: from 7:00 A.M. and 7:00 P.M. Eastern time, Monday through Friday

New language: Monday through Friday, 7:00 a.m. to 7:00 p.m., Eastern Time.

Justification #15: We are making this change to have the language comply with other agency notices.

• Change #16: We are changing the language under Return This Questionnaire section:

Old language: Tax payments are payable to the Internal Revenue Service

New Language: Send your tax payments directly to the Internal Revenue Service.

Justification #16: We are making this change to improve clarity and emphasize that all payments go to the IRS, not SSA.

Changes to the SSA-97-SM only:

• Change #17: We are adding the new language “Household Employment Taxes” and deleting “Form 1040.”

Justification #17: Removing the wording “Form 1040” and replacing it with “Household Employment Taxes” will assist SSA in reducing employers inadvertently sending personal tax information on a regular Form 1040 for reconciliation cases. Since Form 1040 has different schedules, naming the document decreases the likelihood of receiving the wrong form.

• Change #18: We are revising the language under the Caution:

Old Language: Caution: You must identify this as a reconciliation file when you submit it! Enclose the electronic receipt showing the Wage File ID (WFID) as proof of filing.

New Language: Caution: If you are filing electronically, be sure to check the box indicating the submission is in response to a reconciliation notice. When you return this questionnaire, include a copy of the Business Services Online (BSO) receipt showing the wage file identifier (WFID) as proof of filing.

Justification #18: We are modifying the language to provide additional and clearer instructions for employers on how to accurately submit wage report files in response to a

reconciliation notice. The revised language provides clarification to assist the employer from mistakenly taking two separate types of actions at the BSO site.

• Change #19:
  
  

  • We are changing the language in item 2 of the Check and Complete section:

Old language: Sending SSA an electronic file.

New language: Enclosed is a copy of the Business Services Online (BSO) receipt showing the wage file identifier (WFID) as proof of filing.

• We are deleting the Caution under item 2. It is not applicable since no filing is necessary.

Justification #19 : We are making this language change to coincide with the new language included under the Caution, which requests a copy of the BSO receipt be included as proof of filing.

• Change #20: Under Check and Complete, numbers 3, 4, 6, and 7 we are adding a Note advising the employer not to send us original copies of IRS tax reports.

Justification #20: We are adding the new note to make the employers aware that SSA should be receiving only copies of IRS tax reports, and all original documents go to the IRS.

• Change #21: We are changing the language under INFORMATION ABOUT THE DATA YOU SEND SSA, Note:

Old language: between 7:00 A.M. and 7:00 P.M. Eastern time, Monday through Friday

New language: Monday through Friday, 7:00 a.m. to 7:00 p.m., Eastern Time.

Justification #21: We are making this change to have the language comply as is in other agency notices.

• Change #22: We are changing the language under Return This Questionnaire section:

Old language: Tax payments are payable to the Internal Revenue Service

New Language: Send your tax payments directly to the Internal Revenue Service.

Justification #22: We are making this change to improve clarity and emphasize that all payments go to the IRS, not SSA.

Other Minor Revisions to the Collection Instruments

• Change #23: We are revising the Privacy Act Statement on Form SSA-95-SM.

Justification #23: SSA’s Office of the General Counsel is conducting a systematic review of SSA’s Privacy Act Statements on agency forms. As a result, SSA is updating the Privacy Act Statement on the form.

• Change #24: We are revising the Privacy Act Statement on Form SSA-97-SM.

Justification #24: SSA’s Office of the General Counsel is conducting a systematic review of SSA’s Privacy Act Statements on agency forms. As a result, SSA is updating the Privacy Act Statement on the form.

SSA will implement the changes above upon OMB approval.

These actions do not affect the public reporting burden.

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