Illegal Aliens Vesting for Pension
Dana
8 Posts
As a company we received a letter from the IRS stating that employee names did not match the social security number (our HR department at the time did not verify SS# with names upon hire). After researching each employee it was discovered that we had social security cards on file for all the employees, yet these were falsified documents. After having a meeting with the employees all were given 5 days to provide REAL documentation or they would be terminated. All employees were terminated.
Two months later, 3 employees come back and provide a New social security card with a New name. Our HR department verified the new information and the employees were hired back. My issue is the HR department is not counting their previous time employed towards vesting for our Retirement Plan because they now have a different name and social security number. I feel this is incorrect due to the fact that our plan document states if you work for the company 1000 hours in any given year. You will be vested after 3 years of employment.
Has anyone come accross this? If so, how was it handled? Thanks in advance for any responses!
Two months later, 3 employees come back and provide a New social security card with a New name. Our HR department verified the new information and the employees were hired back. My issue is the HR department is not counting their previous time employed towards vesting for our Retirement Plan because they now have a different name and social security number. I feel this is incorrect due to the fact that our plan document states if you work for the company 1000 hours in any given year. You will be vested after 3 years of employment.
Has anyone come accross this? If so, how was it handled? Thanks in advance for any responses!
Comments
>not crossing any lines with Immigration Act.
The rights afforded and protected under the immigration act end precisely at the moment one falsifies documents and defrauds the employer, and by extension, the government.
I'm asking you this question since you're a payroll person: do you recall, once your company found out that an employee had a false social security number and terminated their employment, how did you handle the withholding on the final paycheck? We just found out a new employee provided a falsified Soc. Sec. Card. She hasn't received a paycheck yet, so her final check will be the first time (and last) she gets paid. We're not sure how to pay her - with or without social security tax withheld. Any advice?
Thanks,
DiDi