Caution:

Don’t accept a social security card that says “Not valid for employment.” An SSN issued with this legend doesn’t permit employment.

You may, but aren’t required to, photocopy the social security card if the employee provides it. If you don’t provide the correct employee name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. See Pub. 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs on Information Returns, for information on the requirement to solicit the employee’s SSN.