If you was the payroll supervisor what would you do if you noticed that a Social Security number is wrong on a employees' W-2 form. How would you go about correctng the form. Will the employees be penalized for filing incorrect forms.

First most would never notice it, unless it just did not match another form the employee filled out. Normally you merely check it against the photo copy of the social security card taken when you were hired and they just correrct it. Or they may ask the employee to correct it on the form.

If the employee did not have a valid number or they were doing some type of fraud, most likely they would be fired.

First of all, the employer needs to file a W-2c for eacdh incorrect W-2, and also a W-3c to correct the original to the Social Security Administration. The employer is also responsible for reporting changes the each W-2 to the involved employee.