Federal W-2 Rejections: Common Errors and Resolutions
Overview
When filing W-2s electronically, the Social Security Administration (SSA) may reject submissions for various reasons. Below are common W-2 rejection messages and the steps to resolve each one.
Rejection: EIN Does Not Match Official Records or Has Not Been Issued
Message: "We were unable to process your wage report because the Employer Identification Number (EIN) provided does not match official records or has not been issued."
What This Means: The SSA does not have the EIN listed as registered in their system. This can occur if the EIN was recently issued and is not yet available for electronic filing.
How to Resolve:
- Send a fax to 866-518-5510, attention Jeff Warder.
- Include a cover sheet with the following information: client's name, contact name, contact phone number, and EIN.
- Attach a copy of the client's SS-4 form showing the business name and EIN. If the SS-4 is not available, a CP575A or CP575B form may be provided instead.
Rejection: Report Exceeds Withholding Limit for 944 Filer
Message: "Report exceeds Withholding Limit for 944 Filer."
What This Means: The IRS has determined that the calculated tax liability is higher than the allowed thresholds ($1,000 or $2,500) for annual small business reporting under Form 944.
How to Resolve:
- Review and confirm the total tax liabilities for the client.
- If needed, update the federal deposit (FD) form type in the system by navigating to Setup > Employer > Tax Information.