SSA "No Match" Letters Return
The Social Security Administration (SSA) has re-started its practice of issuing “no match” letters to employers last month. Also known as “Employer Correction Requests,” these letters inform an employer when an employee’s W-2 information such as their name and Social Security do not match the SSA’s records. If employers receive such a notice, they should investigate and follow these steps:
Check their records for a clerical error. If there is a clerical error, employers should correct it with SSA.
If no clerical error, notify the employee of the mismatch with a notice and have the employee correct it. See sample here.
Give the employee a reasonable period of time to resolve the mismatch with the SSA. If no action is being taken by the employee to resolve the issue, it may be necessary to reverify the employee’s work authorization by completing a new I-9 form.
If the employee states the Social Security number is correct, the employer may also contact SSA to verify that the employer has looked into the matter and the employee does have the correct social security.
If SSA responds that the Social Security number is invalid, termination may be appropriate. Or, if the employer has actual knowledge the employee is unauthorized to work, the employee must be terminated. Legal counsel should be consulted if termination is decided.
Efforts to obtain the corrected information should also be documented. While this is normally a payroll tax issue, this could become an immigration issue if the employer does not take action.
This alert is for informational purposes only and does not constitute legal advice. Please contact us if you wish to discuss this development further.