The Social Security Administration (SSA) notifies employers when they determine that the tax identification number or Social Security number of an employee submitted by an employer to the state workforce agency does not match the records of the Internal Revenue Service (IRS). The notification, commonly called “No-Match” letters, comes at some point after the IRS has processed the annual tax filings by employers. A typical “No-Match” letter indicates that the letter makes no claims about the legal status of an employee.
On August 18, 2007, The Department of Homeland Security (DHS) issued new regulations intended to help employers ensure their employees are legal U.S. citizens and to assist the government in identifying and punishing employers who knowingly hire illegal workers. The regulation clarifies that employers may be held liable if they ignore the “No-Match” problems by failing to take specified steps within 90 days of receiving the letter.
ABC has compiled two guides to assist its members in navigating the new rules for responding to a “No-Match” letter, which is a notice from SSA or DHS that an employee’s name does not match the Social Security number provided.
The first guide provides a safe-harbor procedures checklist for employers who receive either an “Employer Correction Request” (“No-Match” letter) from SSA or a “Notice of Suspect Documents” letter from DHS’ Immigration and Customs Enforcement agency (ICE).
Additionally, ABC has compiled a “DHS Safe-Harbor Procedures Questions and Answers Fact Sheet” that explains a contractor’s rights and obligations under the new “no-match” rules. It provides a range of information on safe-harbor procedures, including what actions a company should take after receiving a “no-match” letter, the potential penalties for not taking action, and where to go for additional information.