Volume 1, Issue 5 (September, 2007)

Department of Homeland Security Finalizes New Rule on No-Match Letters
 

As part of an enhanced enforcement effort, Department of Homeland Security recently finalized a set of regulations that employers must follow when they receive “no-match” letters from the Social Security Administration (SSA). 

Employers submit employee social security information annually through W-2’s to the SSA to report wages.  The SSA routinely sends “no-match” letters to employers with employees whose Social Security numbers do not match government records.  This year it is expected Florida employers will receive 7,378 “no-match” letters.  Prior to the new amendment many employers ignored such notifications.

 Effective September 2007, employers will be in violation of federal immigration laws if they ignore the “no-match” letters and fail to take corrective steps within 90 days of receipt of the notification.

Employers who receive a “no-match” letter should take the following steps:

• Check the employment records for clerical errors

• Confirm that employee information matches government records

• Terminate any employee whose “no-match” problems are not resolved in 90 days

DHS will use its existing authority to update civil fines for inflation in order to boost fines. As part of the increased enforcement effort, the DHS will increase fines by 25% for employers that knowingly hire illegal immigrants.

Additionally DHS plans to issue proposed rule changes that would reduce the number of identity documents employers can accept in confirming the work eligibility for employees and that would require federal contractors to use the federal government’s electronic employment verification system.

The bottom line, make sure that the employees you hire are eligible to work in the United States. A good hiring practice is to do a background check on all new hires. Such a background check will identify individuals who are using a false social security number. If you do receive notification from the Social Security Administration that a social security number of an employee does not match their records take action immediately.

Employers that make “good faith” efforts to solve any social security number problems will not be held liable, according to DHS officials. Persons and businesses that do their best in good faith to comply with the rules have nothing to fear from these changes and new initiatives.

Team HR can help protect against receiving a “no-match” letter that may ultimately lead to an unwanted termination of an employee by setting up hiring procedures to ensure your new hires are legally eligible to work in the U.S.