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View Full Version : Do I need to find/purchase a Social Security Number Deissemination Form?



TheAverageBear
03-16-2012, 06:26 PM
I'm in the beginning phases of establishing a 401(k) defined contribution plan for my employees.

I've been told that when I create 401(k) accounts that I'll need "consent forms" to disseminate the Social Security number of the employee to the plan's provider/

What???

I don't need that signed permission to establish payroll to the IRS.

Why does the provider of the 401(k) plan not provide a form if it is that so "hoity toity" important?

Anyway this form is supposed to state whatever federal statute authorizes me to ask for the Social Security number and how the Social Security number will be used.

I have a list of HR forms that I can purchase BUT THERE is nothing available for this type of form... Why not? If this was all that important or mainstream, it should be in a list of HR Forms.

What federal statute requires me to ask for this in the first place and what is the downside if I just decide to blow this supposed requirement off? How much trouble, if any, would I be in?

Steve B
03-16-2012, 07:31 PM
Have you asked these questions to the person/entity that told you of the requirement?

TheAverageBear
03-16-2012, 11:41 PM
Have you asked these questions to the person/entity that told you of the requirement?

Yeah... it was one of my underachieving employees and he showed me a "Social Security Administration FAQ" but the SSA FAQ left the reader hanging by not stating the statute and it did not specifically deal with 401(k) plans but more generically with any request for Social Security number dissemination.

Help!!

Steve B
03-17-2012, 07:04 AM
I don't understand your frustration. It sounds completely legitimate to me that you should have someone's authorization before passing their ss # on to any other person or organization. I'm sure your 401(k) company will guide you through the proper method for doing so. If they don't have one or can't give you advice on the topic, find another provider.

TheAverageBear
03-17-2012, 11:23 AM
Yeah.. but I came here to this forum for the answer. I may end up creating this fund myself and have it managed in-house. I'll probably go with a 401(k) provider but I'm not certain of that yet

Thank you for the assistance but I am asking the question for someone who either knows or is in a position to find out. If you know someone that you could ask, I would appreciate it.

If you know someone who has one of these forms, I'd like to see a .txt file of it

What is the Federal Statute that allows me to ask for this information?

I would assume that signing up for the 401(k) account would imply consent to release the s.s.# just as I'm guessing that filling out a W-4 provides consent to release the TIN to the IRS.

Thanks for helping, Steve and for being one of the more active participants on this forum.

nealrm
03-19-2012, 07:17 PM
Go to The United States Social Security Administration (http://www.ssa.gov) and look under business forms.