Employee Refusal to Provide SSN

[Christine Roberts]

Have any of you heard of a "rule" that allows an employer to terminate an employee after three days if she/he refuses to provide a Social Security Number? I seriously doubt this is enforcable, but am seeking any information out there on this concept.

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[Guest [Pat M]]

See DOL Basic Provisions/Requirements

Under IRCA, employers may hire only persons who may legally work in the United States (U.S.): citizens and nationals of the U.S. and aliens authorized to work in the U.S. The employer must verify the identity and employment eligibility of anyone to be hired which includes completing and retaining the Employment Eligibility Verification Form (I-9). Employers must keep I-9s on file for at least 3 years (or one year after employment ends, whichever is greater).

[Guest CLKeown]

I think you are referring to the I-9 Employment Eligibility Verification (available from the Immigration and Naturalization Service). This form must be completed and documentation presented within three days of the first day of work. An employee cannot work legally without that document being completed. If the employee has not provided all of the needed documentation within 3 days of starting to work the employer is legally bound to prohibit the employee from working.

However, it is important to note that while a Driver License and Social Security Card are the two most common forms of proof used, you CANNOT stipulate which documents you will accept. It is therefore not legal to tell an employee that they must provide a Driver License and Social Security Card if they have another eligilbe document available.

Legally, you are required to provide to them the form and indicate the listings of acceptable documents. The employee then provides the documents (either one document from list "A" or two documents from list "B").

Additionally, you should refer to your IRS Publication 15 (the Circular E). For 2000, page 8 clearly states that you are required to record the employee's legal name and SSN on form W-2. In the event that an employee does not have a SSN, the should apply for one. If the employee has applied for a SSN but has not received it at the time you must file W-2's you are required to enter "applied for" on the form and subsequently file a W-2c when the employee recieves the SSN. If you do not file a W-2 or file with an incorrect SSN for an employee you (the employer) are subject to a penalty.

New employees are also required to complete a Form W-4, which requires the employee to provide a SSN.

I am uncertain about the HR/Employment laws regarding terminating someone solely for not producing his/her SSN. But there are certainly several compelling reasons to give to a reluctant employee.

Carole

[Guest julianne brown]

There is a 3 day rule for completion of the I9. I agree with CLKEOWN'S analysis.

[Guest Linda Wilkins]

My question is whether an employer who discovers that the worker furnished a fraudulent SSN#, where the worker does not correct the record and provide one, may require it as a condition of (i) receiving distribution of qualified plan monies; (ii) payment of pending health claims; and (iii) eligibility to make a COBRA election? (Is this a termination by reason of "gross misconduct"?)

[mbozek]

Under the employment at will doctrine an employer can always terminate an employee for a non discriminatory reason unless an employee has a written contract or is a member of a union. Second an employee is required to provide a correct ss number for fed and state tax withholding. If the ss number is fraudlent then the employee should be terminated. I think one of the conditions for applying for benefits is that the employee not falsify information.

[Mike Preston]

I don't know about (ii) or (iii), but we have always held that a disribution can not be made to an individual under (i) (a qualified plan) unless the individual provides a valid SSN. If the employer finds out that an SSN on file is not valid, the distribution can't be made until a valid SSN is obtained. I've never been faced with a termnating plan that had a short time fuse on this issue, though. Normally, just telling the individual that they have to get a valid SSN before they can receive their distribution is enough to make them go ahead and get one.

[Guest b2kates]

I strongly endorse Mike Preston's view. At the bank, we would withhold distribution if there was no valid SSN. In one situation, we had beneficiaries refuse to provide a number. They threatened to sue the Trustee.

Legal at the time said no SSN no funds, let them sue. IF no valid SSN Payor may have a penalty when filing 1099R.

Feeling was no attorney would handle matter if properly document request for SSN. In federal court would have to explain to Federal judge why the refusal to provide. likely result in referral to IRS-- potentially CID.

[mbozek]

I dont know what valid reason for receiving payment could be made by a recipient who refuses to provide a correct ss number /tax ID in order to receive a distribution since a tax id is required by law.