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. Employees may also receive a new SSN if they have recently become legally authorized to work in the United States. They may also 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. Employers need to proceed cautiously, depending on the particular situation.
Form I-9
The Form I-9 is used to verify a new hire's identity and work authorization. All employers must ensure that a Form I-9 is properly completed for each employee at the time of hire.
No later than the first day of work, the employee must complete Section 1 of the Form I-9 and sign and date certifying under penalty of perjury that the information provided is true and correct. For completion of Section 2, the employee must present genuine and unexpired identity and work authorization documents. The employee may choose which document(s) to present, as long as the documents are on the form's List of Acceptable Documents.
The employer must verify the documentation presented and complete Section 2 of the Form I-9 not later than three days after the employee’s first day of work. If an employee's work authorization document expires, the employer must reverify authorization to work by completing Supplement B (formerly known as Section 3). The employee must provide acceptable documentation for reverification no later than the expiration of the current work authorization. Keep in mind that many List A Employment Authorization Documents may be eligible for an
automatic extension.
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 an SSN in Section 1, then:
- Complete a new Form I-9.
- Write the original hire date in the "The employee's first day of employment (MM/DD/YYYY)" space in Section 2; and
- Attach the new Form I-9 to the previously completed Form I-9.
- Include a written explanation.
Review information from USCIS on recording changes of name and other identity information for current employees.
Updates to Section 2 information
If an employee originally presented a Social Security card for section two and is now presenting a new Social Security card for section 2 then we recommend discussing next steps with an immigration attorney. Depending on the circumstances, completion of a new Form I-9 might be appropriate under USCIS guidance.
Form W-4
If an employee has a new SSN, they should also be asked to complete a new Form 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 Form W-2 for that employee, you may be required to submit a Form W-2c to make the correction. A Form W-3c 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 benefits 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 benefits professionals to assess the impact, and ensure compliance with recordkeeping requirements.