How to Handle Employee Name or SSN Mismatches in Payroll Records

Employers need to know how to handle employee name or SSN mismatches in payroll records to avoid IRS penalties, ensure correct wage reporting for employee benefits, and prevent potential discrimination claims. Mismatches can signal data errors or potential identity/work authorization issues, but ignoring them can lead to further investigations and accusations of unfair immigration or employment practices. 

The attorneys at Monty & Ramirez LLP can guide employers through careful, compliant procedures for correcting records. Our employment and business immigration attorneys can advise on documentation and protect against adverse employment actions while resolving discrepancies.

What Should You Do If the SSA Informs You That An Employee’s Name or SSN Mismatches Payroll Records? 

If the SSA informs your business of a name or SSN mismatch, commonly via a “no-match” letter.  You must follow a standardized process to correct the error while avoiding discriminatory actions. Immediately compare the mismatch notice against your payroll records and the employee’s original Form I-9. Look for transposed digits, misspelled names, or missing hyphens.

If you find a data entry mistake, correct your internal payroll records immediately. If a Form W-2 was already submitted with incorrect data, file Form W-2c (Corrected Wage and Tax Statement) with the SSA. If your records are accurate, notify the employee privately and inform them in writing of the mismatch. For E-Verify mismatches, you must notify the employee and complete the referral process within 10 federal working days. 

Do not allow supervisors or other non-essential personnel to attend in order to protect the employee’s privacy. Provide the employee with a Further Action Notice for E-Verify cases or a Sample SSA No-Match Letter for general SSA notices. Ask the employee to review their Social Security card and confirm that the name and Social Security number in your records match the card exactly.

Federal law prohibits taking adverse actions—such as firing, suspending, or delaying training—solely because of a mismatch while the employee is working to resolve it. The employee must decide whether to contest the mismatch within 10 federal working days. If they choose to resolve it, they typically have eight federal working days to contact the SSA or DHS. 

If the employee’s Social Security card matches your records, they must visit a local SSA office to resolve the discrepancy in the agency’s database. While the law does not strictly define reasonable, best practices suggest allowing 60 to 120 days for final resolution, provided the employee shows consistent effort. 

Document Storage Tips to Address Mismatches 

Document all efforts to resolve the mismatch and keep these records for at least three years. You may only consider termination if the employee admits they do not have lawful work authorization or if they flatly refuse to take steps to resolve the discrepancy after a reasonable timeframe.

Store all mismatch-related correspondence and documentation (e.g., meeting notes, signed notification letters) in a dedicated SSA/E-Verify file separate from the standard personnel file. Record the date you received the notice, dates of all meetings with the employee, and a summary of instructions provided.

Retain copies of submitted Forms W-2c and screen confirmations from the SSA’s Business Services Online (BSO) portal. Only authorized HR personnel should have access to the mismatch folder. Supervisors should not be notified of the mismatch status unless they are part of the direct resolution process.

If a mismatch leads to completing a new Form I-9 (often required after 90 days of non-resolution), you must retain both the old and new I-9 forms for three years after hire or one year after termination, whichever is later.

Contact Our Attorneys About Handling Employee Name or SSN Mismatches in Payroll Records 

The employment attorneys at Monty & Ramirez LLP can offer strategies for how to handle employee name or SSN mismatches in payroll records. We can help establish standard, compliant procedures for verifying and correcting employee information. Missteps like firing someone solely for a mismatch violate immigration and employment law and expose your company to legal risks. 

Employers must verify records, involve the employee, and follow specific procedures for correction rather than assuming fraud or taking immediate adverse action. Our team regularly advises companies on integrating SSN resolution with I-9 and E-Verify processes to ensure proper work authorization verification. Give us a call today to request legal advice in a confidential case consultation.