What is a No-Match letter?
There are two types of “No-Match” letters:
- Sent by the Social Security Administration (SSA).
- Sent by the Internal Revenue Service (IRS) (CP2100 and CP2100A).
1. Sent by the Social Security Administration.
A No-Match letter sent by the SSA is an attempt to combat the influx of aliens working illegally in this country. The SSA will send to employers a report that contains the names of employees that do not match with the SSA’s records. The SSA is cooperating with the Department of Homeland Security (DHS), formerly known as the Immigration and Naturalization Service.
DHS has issued regulations that require that any employer that receives a No-Match letter from the SSA fire any employee that has not explained the discrepancy within 90 days. If the employer does not answer the No-Match letter within those 90 days and does not fire the employee, the DHS will conclude that the employer has “constructive knowledge” that the employee is not authorized to work in the United States and will impose sanctions. These regulations are under injunction at the moment.
But putting the DHS regulations aside, if you receive a No-Match letter from the SSA, this is what you must do:
- Within 14 days of receiving the letter you must examine your payroll records to determine if an error has occurred. If no error has been detected, you must give a copy of the letter to the employee.
- After the employee receives a copy os such letter, the employee has 60 days to resolve the discrepancy with the SSA. Do not dismiss the employee.
- If the discrepancy has not been resolved within 60 days after the employee receives a copy of the notice, you must give the employee a new Form I-9 within 3 days after the 60 day period expires. The employee must provide the documents required by the I-9.
- If the employee does not provide the employer with a new I-9 and supporting documentation, it may be presumed that the employee is not authorized to work in the United States.
NOTE: The SSA regulations do not require that you fire the employee if the employee refuses to provide this documentation. But, practically, if you retain such employee you may be charged with knowingly hiring persons unauthorized to work in the United States (illegal aliens) and be subject to penalties.
2. Sent by the Internal Revenue Service. (Next page).
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