Question

Can you provide more information about what to do if we receive a no-match letter? I read a recent story in The Boston Globe about no-match letters. We haven’t received any recently, but the article suggested that receiving one could indicate a problem with an employee’s legal status.

Answer

The Globe article highlights that the federal government has more than one arrow in its quiver to get an employer’s attention about an employee’s legal status. Dating back to the 1990s, the Social Security Administration (SSA) has regularly issued no-match letters to employers. While the practice has ebbed and flowed over the years depending upon the incumbent administration’s priorities and legal challenges, the number of no-match letters sent to employers in 2020 dropped precipitously due to the pandemic. Late in 2020, employers began to receive no-match letters again.

What is a No-Match Letter?

The purpose of a no-match letter is to inform employers of a discrepancy in an employee’s information (e.g., name, Social Security number) between the SSA’s records and the employee’s Form W-2. The no-match letters instruct employers to review the discrepancies through a designated SSA online portal, inform the employee of the no-match and submit corrected information within 60 days. The law also makes it clear that if the employer ignores the no-match letter, it could face serious legal compliance issues.

Steps to Take When You Receive a No-Match Letter

Receiving a no-match letter for the first time can raise many questions. Here are the steps you should take:

• Follow the SSA instructions about visiting the SSA online portal.
• Check employment records to confirm whether there is a mistake in the Social Security number, such as a transposition error in the numbers.
• If there is no mistake in the employer’s employment records, inform the employee of the receipt of the no-match letter and tell the employee to correct the discrepancy.

Even though many, if not all, no-match letters will involve employees born outside the United States, the law is clear that the receipt of the no-match letter cannot be the sole basis for disciplinary action or termination, as the employer may run the risk of national origin discrimination. Instead, it should serve as the beginning of a discussion with the employee about the issue.

If the employee needs time to address the issue, an employer should give the employee a reasonable period to do so. The employer should also document all the steps from the receipt of the letter until the employee resolves the issue. Be mindful that the SSA expects corrected information to be submitted within 60 days.

Preventive Actions Employers Can Take

Employers can take several actions prior to a no-match letter arriving.   One is to review existing employment documents that have an employee’s Social Security number to ensure they are consistent. The second is to review existing Form I-9s to ensure they are complete and accurate. If information is missing from the I-9, now is the time to correct it with your employee.

When a no-match letter causes an employee to quit, be sure to fully document the circumstances surrounding the letter’s receipt and conversations with the employee in case a legal challenge arises in the future.

More information is available here.

Need Help with No-Match Letters or I-9 Audits?

If you have questions about no-match letters, please call the AIM HR Helpline at 1-800-470-6277 or helpline@aimnet.org for guidance.

For more detailed assistance—such as conducting an I-9 audit or addressing other complex compliance needs—AIM HR Solutions can help. Contact us to learn more about this service:

• HRInfo@AIMHRSolutions.com | 617-488-8321

Visit us at www.AIMHRSolutions.com