Increase in Social Security Administration
"No Match" letters sets off employee panic

Problem

Businesses have noticed an increase in the number of “No Match” letters from the Social Security Administration. Under federal law, both businesses and employees are required to report Social Security numbers. Employees are required to provide a valid number or a receipt that states they have applied for a number. Businesses are required to include the employee’s number on the W-2 wage report that is filed with the IRS for wages paid to the employee. The “No Match” letters state that the information the employer provided does not match with their records.

Solutions:

1. Review the employee’s new hire documents. If you detect an error, conduct an investigation. If the company caused the mistake, correct it. Provide the employee an opportunity to review the documents and correct any mistakes on his end, also. If one of you made a mistake, prepare and file a W-2C with the correct information.

2. An ounce of prevention is worth a pound of cure. Before you receive a “No Match”, develop a form telling employees their rights. Include guidance about how the employee can rectify the problem with the Social Security Administration (SSA). Provide a time limit of 45 days from the date on the “No Match” letter or the date the letter was received. Include a statement of acknowledgment for the employee to sign that says they have received the form and will resolve the mismatch situation.

3. Most employees will correct the problem. Some may disappear.

4. If an employee does not resolve the problem, you could then discharge the employee based upon the acknowledgment document he/she signed.


Save Your Time & Ensure Compliance . . .
Take Advantage of Our Services Today!

1. Provide advice to assist you and/or conduct investigations

2. Create forms, policies, and procedures

If you would like professional assistance in this area or another human resource area, please schedule a consulting appointment by calling (417) 881-8639 or (800) 378-3554, Fax (417) 889-6176, or e-mail us at lynne@haggermanandassociates.com.
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Lynne Haggerman
President/Owner
Haggerman & Associates
3447 South Campbell
Springfield, Missouri 65807