What Business Owners Need To Know About No-Match Letters
If you are familiar with the term “No-Match Letter,” you might be reminded of the 1990’s where these letters became fairly notable. Though not much has been said about them in recent years, many have noticed they are making a comeback. While this comeback has seemingly happened under the radar, it’s important for business owners to know what their options are when and if they receive a No-Match Letter.
Officially known as Employer Correction Requests, No-Match Letters are sent to inform an employer that the information submitted on an individual’s W-2 form or tax filing does not accurately reflect (or match) their records. The Social Security Administration has indicated the letters are issued in order to correct its database and ensure employee earnings are accurately credited to their Social Security records. While the names of affected employees are not listed in a No-Match Letter, the employer is directed to register an account with the SSA’s Business Services Online (BSO) in order to determine whose information needs to be updated.
In 2012, the Obama Administration stopped the practice of sending these letters out; however, in July 2018 President Donald Trump sought to have the SSA resume the practice by sending out informational notices of W-2 mismatches to employers along with resources for resolution.
If your business happens to receive one of these letters, it’s important to understand that a mismatch does not mean there was necessarily any wrongdoing. These mistakes can occur due to administrative error or a life change like marriage. However, once the letter is received, employers can sometimes find themselves caught between government agencies because the SSA wants to maintain accurate earnings records while Immigration Customs Enforcement wishes to ensure compliance with employment verification laws.
As an employer, there are multiple options for ensuring your employee records are accurate and up to date. It’s important not to take any adverse action against an employee solely because of a No-Match Letter. It’s important to cooperate with the employee because comparing the SSA information with the employee’s records can be helpful in isolating the error. In the event the records do match, ask the employee to check the name and number on their social security card. If you both find a mistake in the employee’s own personal identification documents, then simply have the employee reach out to SSA to resolve the issue.
Houston Business Litigation Attorneys
Running a business is no easy task. The lawyers at Adair Myers Graves Stevenson are dedicated to helping businesses navigate all of their legal issues. We provide businesses with strategic and personalized legal advice. Our experience and temperament allows us to both fight aggressively for our clients in court and bring cases to a mutually agreeable result through cooperation or negotiation. We can protect your interests when you need us the most. Contact us today to discuss your legal needs.