Receiving a “no-match” letter
Beginning in the spring of 2019, the Social Security Administration (SSA) began sending businesses and employers “no-match” letters. They are meant to warn employers when there is a disparity between the SSA’s records and reported W-2 forms regarding the employee’s name and Social Security number (SSN). The letters inform employers that corrections are needed for the SSA to “properly post” an employee’s wages to determine whether or not he or she qualifies for certain Social Security benefits.
Reasons for discrepancies
An employee’s name and SSN may not match for a range of reasons such as a simple typographical error when typing the SSN or name change, or intentional use of false information that could be given by undocumented workers.
There is controversy over these no-match letters. Some lawmakers believe that in “the current immigration enforcement climate” some employers might worry that one of these letters means there isn’t an immigration status for the employee and will fire him or her unnecessarily.
Should you receive a no-match letter, the SSA advice taking the following steps:
- Ensure your information matches the name and SSN on the employee’s Social Security card. If it doesn’t, ask the employee to provide you with the exact information as it is shown on the card.
- If the information matches the employee’s card, your employee will have to contact the local Social Security office to resolve the issue.
- When the problem is solved, the employee should inform you of any changes.
It is important to keep in mind that the IRS is responsible for any penalties associated with W-2 forms that have incorrect information. If you have received a no-match letter and have questions, contact us or look at these frequently asked questions from the SSA by clicking HERE.