Resident aliens and census data

[Guest RLD]

I have a client who employs a lot of Hispanic workers for their quarry. One of the things I've encountered is employees using the same SSN, changing their name, etc. There's also a great deal of rehire activity. Most of these people don't meet eligibility (21 & 1, semi), but some do. Those that do, very few actually contribute.

I think the employer does make an effort to verify the information and SSN. My contact has mentioned talking to the SSA about these issues. I have asked the employer for clarification on many people, but sometimes wonder how much follow through is reasonable. I only think this based on the low number that do meet eligibility and the low number that contribute. If the plan were ever to be audited, how might the Service view this situation?

Thanks in advance for any insight on this.

[Guest b2kates]

More important threshold issue. Are these green card authorized individuals to work. using the same SSN raises the spector of employement Fraud. Bigger issue today. employing illegal aliens.

[John A]

For qualified plan purposes, if a plan sponsor employs illegal aliens, unless the plan document specifically excludes "illegal aliens," wouldn't the plan have to include the employed illegal aliens?

[FJR]

John, I think your refering to non-resident aliens. Not illegal aliens. Most plans will exclude if they are non-resident. If they are coming into the country illegaly and the client is employing them, I would think he has got bigger problems. Escpecially in light of 9/11.