An Employee Presents a New SSN … Now What?
While not necessarily a common situation, when an employee presents a new Social Security Number (SSN) it can be especially tricky to address. Here are some records that may need to be updated and steps you may need to follow when an employee's SSN changes.
Background:
An employee may receive a new SSN for a number of reasons, such as if they're a victim of identity theft or domestic violence and may have protections under federal, state, and/or local law when updating their information. For example, in California, employers are prohibited from taking adverse action against an employee because they update or attempt to update their personal information based on a lawful change of name, SSN, or a federal employment authorization document.
Form I-9:
The Form I-9 is used to verify a new hire's identity and work authorization. All employers must ensure that each employee properly completes the I-9 at the time of hire. In Section 1 of the form, the employee must provide certain identifying information and attest that they're authorized to work in the U.S. In Section 2, they must present certain identity and work authorization documents. The employee may choose which document(s) to present, as long as they are on the form's List of Acceptable Documents. If an employee's identity or work authorization document expires, they must complete Section 3 and present new or updated documents.
Updates to Section 1 information:
The first step you should take after receiving a new SSN from an employee is reviewing the employee's previously completed I-9 to determine whether the employee provided a SSN in Section 1 (providing a SSN in Section 1 of the form is voluntary, unless you participate in E-Verify). If the employee did provide a SSN in Section 1, then a new I-9 must be completed, according to guidance published by U.S. Citizenship and Immigration Services (USCIS).
When completing Section 2 of the new form, write the original hire date and examine the employee's identity and work authorization document(s) to determine whether they reasonably appear to be genuine and relate to the employee. You can't require the employee to present certain documents to verify identity and employment eligibility. When finished, attach the new I-9 to the previously completed I-9 and include a written explanation. If you participate in E-Verify, complete that process for the employee using the new I-9 information as well.
Note: If an employee reports a different name (other than a legal name change), date of birth, or attestation, a new I-9 must be completed. Separate rules apply to legal name changes.
Updates to Section 2 information:
In other situations, the rules for whether a new I-9 is required may be different. For example, if there are no changes to the information in Section 1 and the employee presents a new Employment Authorization Document, USCIS says the employer should take the following steps in Section 3:
- Examine the documentation to determine if it appears to be genuine and relates to the employee presenting it.
- Record the document title, document number, and expiration date, if any.
- Sign and date.
If you previously completed Section 3, or if the version of the form you used for a previous verification is no longer valid, you must complete Section 3 of a new I-9 using the most current version and attach it to the previously completed Form I-9.
W-4:
If an employee has a new SSN, they should also be asked to complete a new W-4 (Employee's Withholding Certificate) and state withholding form (if applicable). If you received a new SSN from the employee after you have filed a W-2 Form for that employee, you may be required to submit a W-2c Form to make the correction. A W-3c Form must be filed whenever a W-2c is submitted. Work with your tax advisor to ensure taxes are reported correctly.
Benefits:
If an employee provides a new SSN, benefit plan records may need to be updated since there may be reporting and other requirements for which benefit plans need an accurate SSN. If applicable, let employees know how they can update their information.
Conclusion:
When an employee presents a new SSN, consider working with legal, tax, and benefit professionals to assess the impact and ensure compliance with recordkeeping requirements.