Social Security Cards

tfevergrn

Our payroll company recently informed us that the Social Security Administration will be fining companies for all mis-matched social security numbers. The fine notices will start to go out to employers in 2004 for the year 2002, two years later. In light of this and everything else that is going on, can an employer make it policy, after hiring a new employee, to require the new employee to provide us with their actual social security card, for copying and payroll purposes? This would be separate from asking for document proof of eligibility to work in the U.S. for I-9 purposes.

Thanks in advance for your help.

Lori B

Hi

Although you can't legally require an ee to produce the SSA card, it is "best practice" to ask for it now in connection with the Form W-4. We alert our ees about this new fine and they seem to understand. Of course, you absolutely cannot ask for it in connection with I-9.

Here is how we handle it with new hires: We ask for the SSA card for the W-4 only. Then we pull out the I-9. We point out to the ee that they have already provided the SSA card and can simply provide a photo ID like the driver's license to be done with it. We then alert them that the choice of what to produce is their choice, so long as they can produce the docs in the instructions. We haven't had anyone balk yet.

moneyman

When we hand out the I-9, we show people the back of the form that shows the types of ID acceptable and mention that most people have provided their Driver's License and SS Card. If the provide it, we ask if we can copy it and it gets filed in their confidential file, separate from I-9s and separate from personnel file (the confidential file is only for Exec. Director, HR Director and legal counsel). We have had people provide us with a passport instead. Our payroll company provides the service of informing us of name/SSN mis-matches. If that occurs, then we explain the discrepancy to the employee and ask for proof to "eyeball" the original SSN (most of the time it has been married women who never notified the SSA that they had a name change).

WOCO Frank

>Hi
>Although you can't legally require an ee to produce the SSA card


Uh oh. We can't?

tfevergrn

We should be able to, as long as we are consistent in asking for the Social Security card for all new employees. Some legal counsel advice here, would be good.

Lori B

You can ask away...you just can't require an ee to produce it to you. Odd rule that seems to conflict with everything the govt wants us to do.... As a practical matter, I don't see anyone getting sued over this issue.

Debra F

Go to the IRS web site and download Pub 15. On page 8 is an explanation of the employer's responsibility concerning the verification of a person's social security number (well, at least that's where it is on the version I have). We make a copy of the person's SSC and keep it with the new hire package until we have them entered into the HRIS to be sure that the name and number in the system matches exactly the name and number on the card. This is regardless of the documentation presented for the I-9. But, as someone said, once they produce this, they are already half-way there. All they need now is a photo ID (and not their Sam's card!).

Theresa Gegen TX

What you should do is verify the names and numbers. There is a free verification service provided by the IRS. You can verify 5 by telephone or more in writing. That way you can catch it (and correct it) before the government catches it.

Here is some info I have put together on it:

Failure to Correctly Record Social Security Numbers Can Result in Administrative Penalty
Recently the Social Security Administration has noticed an increase in the number of incorrect social security numbers being submitted. The Internal Revenue Service has also noticed this increase in incorrect numbers and has indicated that it will start levying administrative fines on employers for incorrect social security numbers.
What must an employer do?
Employers must obtain each employee's name and SSN for W2 forms. This also applies to resident aliens. Even though the IRS may issue an alien an individual taxpayer identification number (ITIN), possession of an ITIN does not change an individual's employment or immigration status under U.S. law. An employer should not accept an ITIN in place of an SSN for employee identification. An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN.
So what happens when an employer enters an incorrect social security number?
The employer will receive a notice from the Social Security Administration that the employee’s social security number does not match the information in its database. The Social Security Administration is generous to the employer – it will give the employer 60 days to fix the problem.
Sometimes it can be something as simple as a typographical or transcription error or a change of name (for example because of marriage or divorce). Sometimes it's because the employee has provided a mismatched or invalid number and in those cases as soon as the employer asks the employee about the number, the employee never shows up to work again. That obviously represents a waste of the employer's resources, given all the effort that goes into hiring and training new employees.
Before taking action against an employee whose social security number doesn’t match their name, make sure to get the employee’s side of the story. The Social Security Administration cautions employers that the fact that a number doesn't match its records doesn't imply that the employee intentionally provided incorrect information or anything about the employee's immigration status and shouldn't be a basis, in and of itself, for taking adverse action.
Hopefully, the number will get corrected, and that will be the end of the issue. But in some cases the Internal Revenue Service may get involved. The IRS has the right to levy a $50 administrative fine against the employer for each incorrect social security number.
How can this problem be avoided?
The Social Security Administration provides a free service that lets employers verify that the social security number matches the employee’s name before the employer submits the W-2. To use the “Employee Verification Service" (EVS) the employer should have the following information available: SSN, last name, first name, middle initial (if any), date of birth, and gender. With that information, the employer can check up to five names by calling the Social Security Administration at (800) 772-6270. The employer can check up to 50 names by submitting a paper list with all the information to the local social security office. To check a large volume of names, the employer can set up an account with the Social Security Administration. To learn how, visit the administration’s website at [url]www.ssa.gov[/url] or call the EVS Information Line at 410-965-7140.

In addition, the IRS provides the following advice:
Record the name and number of each employee exactly as they are shown on the employee's social security card. If the employee's name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a new card from the Social Security Administration. Continue to report the employee's wages under the old name until he or she shows you an updated social security card with the new name.
If your employee was given a new social security card to show his or her correct name and number after an adjustment to his or her alien residence status, correct your records and show the new information on Form W-2. If you filed Form W-2 for the same employee in prior years under the old name and SSN, file Form W-2c to correct the name and number. Advise the employee to contact the local Social Security Administration office about 9 months after the Form W-2c is filed to ensure that his or her records have been updated.
An employer may, but is not required to, photocopy the social security card if the employee provides it. (Please note, that if the employee provides sufficient proof his or her right to work in the United States and provides a social security number, the employer cannot refuse to hire the employee because the employee is unable to produce a social security card.)




Good Luck

sylvia

How do you go about paying someone who worked without a valid SSN? We just found out that a new employee who had worked for us for two weeks had an invalid SSN. At the time of hire, he presented a social security card, a drivers license and an alien registration card. A week and a half later, the background check report came back and informed us that there was no match for his SSN. I called the social security administration, who confirmed that it was an invalid number and suggested that I have him report to the SS Admin. office. I did and, of course, he never came back.
Yet now we have to pay him for the two weeks (we consulted an attorney who said we have to pay him), but don't have a valid SSN. I called the IRS to find out how to go about paying him. They said to mail him a W-9 form to request a valid SSN or ITIN. If he doesn't return the form, we are to do a "backup withholding".
By the way, the number on the SS card he provided started with a nine. The SSA website says no number starts with a "9" - but the IRS does issue nine-digit ITIN numbers resembling SSN's that start with a "9".
Has anyone else had the same problem? If so, how did you handle it? We're now waiting to see if we actually get the w-9 back. (HA!)