Handling Social Security No-match Letters — What Employers Need to Know
Receipt of any letter from the government about being out of compliance can cause alarm for a business. The Social Security Administration (“SSA”) recently resumed notifying employers of mismatches between an employee’s name and Social Security number (“SSN”), known as “No–Match” letters. A No-Match letter informs the employer that discrepancies exist between an employee’s name and Social Security number contained in SSA’s database, against those on the employee’s W-2 form. The purpose is to enable the SSA to allocate Social Security funds correctly.
SSA had stopped sending No-Match letters in 2007 and 2008 (tax years 2006 and 2007), in response to litigation surrounding a proposed Department of Homeland Security (“DHS”) regulation, “Safe Harbor Procedures for Employers Who Receive a No-Match Letter.” DHS later rescinded the proposed regulation. SSA recently decided to resume sending No–Match letters in April 2011, for tax year 2010.
This article first appeared in BUILDERnews magazine.