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What To Do When an Employee Presents a New Social Security Number

Spark Team Spark Team

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When an employee presents a new Social Security number (SSN), it can be especially tricky to address.

Here are some records that may need to be updated and steps you may need to follow when an employee's SSN changes.

Background

An employee may receive a new SSN for a number of reasons, such as if they're a victim of identity theft or domestic violence, and they may have protections under federal, state and/or local law when updating their information. For example, in California, employers are prohibited from taking adverse action against an employee because they update or attempt to update their personal information based on a lawful change of name, SSN, or a federal employment authorization document.

Form I-9

The Form I-9 is used to verify a new hire's identity and work authorization. All employers must ensure that each employee properly completes the I-9 at the time of hire.

In Section 1 of the form, the employee must provide certain identifying information and attest that they're authorized to work in the U.S. In Section 2, they must present certain identity and work authorization documents. The employee may choose which document(s) to present, as long as they are on the form's List of Acceptable Documents. If an employee's identity or work authorization document expires, they must complete Supplement B (formerly known as Section 3) and present new or updated documents.

Updates to Section 1 information

The first step you should take after receiving a new SSN from an employee is reviewing the employee's previously completed I-9 to determine whether the employee provided a SSN in Section 1 (providing a SSN in Section 1 of the form is voluntary unless you participate in E-Verify). If the employee did provide an SSN in Section 1, then:

  • Complete a new Form I-9.
  • Write the original hire date in the "The employee's first day of employment (MM/DD/YYYY)" space in Section 2; and
  • Attach the new Form I-9 to the previously completed Form I-9.
  • Include a written explanation.

If an employee reports a different name (other than a legal name change), you should follow the same steps as above. Separate rules apply to legal name changes.

Updates to Section 2 information

If the Section 1 information hasn't substantially changed, but the employee has offered a Social Security Card that is different than the one they provided at the time of hire, then you should examine the documentation to determine if it appears to be genuine and relates to your employee presenting it.

If it appears to be genuine and relates to the employee presenting it, complete Supplement B of the previously completed Form I-9 if that form is still valid/current. If the version of the form you used for a previous verification is no longer valid/current, complete Supplement B of a new I-9 using the most current version and attach it to the previously completed Form I-9. As of this writing, the current version of the form is dated 08/01/23 in the bottom left.

Form W-4

If an employee has a new SSN, they should also be asked to complete a new Form W-4 (Employee's Withholding Certificate) and state withholding form (if applicable). If you received a new SSN from the employee after you have filed a Form W-2 for that employee, you may be required to submit a Form W-2c to make the correction. A Form W-3c must be filed whenever a W-2c is submitted. Work with your tax advisor to ensure taxes are reported correctly.

Benefits

If an employee provides a new SSN, benefit plan records may need to be updated since there may be reporting and other requirements for which benefits plans need an accurate SSN. If applicable, let employees know how they can update their information.

Conclusion

When an employee presents a new SSN, consider working with legal, tax and benefits professionals to assess the impact, and ensure compliance with recordkeeping requirements.

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This article was originally published as an "ADP HR Tip of the Week," a communication created for ADP's small business clients.