No-Match Letters, What To Do When You Receive One

No-Match Letters, What To Do When You Receive One

Starting in March 2019, the Social Security Administration (SSA) began sending Social Security Number (SSN) no-match letters to employers for the first time in almost a decade. The SSA sends these letters upon discovery that the W-2 records submitted by the employer don’t match the records on file at the SSA. Employers don’t necessarily need to be alarmed, these letters are a warning to employers to carefully check their employee information.

Why Do Employers Receive No-Match Letters?

There are several reasons that could cause the records of the SSA and the employer to be mismatched. For example, the employer or employee could have innocently incorrectly entered the SSN of the employee as a clerical error, or perhaps the employee has changed their name. However, there are other, more serious reasons employers can receive these letters: identity theft, falsification, or even a completely made up SSN. It’s important for employers to take these no-match letters seriously and take the steps to resolve the issue at hand.

After Receiving a No-Match Letter:

Upon receiving a no-match letter, employers should follow step-by-step instructions given by the SSA, and mapped out below. If an employer neglects to follow these steps, the U.S. Immigrations and Customs Enforcement (ICE) may act and assume that the employer has constructive knowledge that they have an unauthorized worker. Conversely, if the employer acts against an employee based solely on the no-match letter, the employer can be sued for discrimination of the employee. Thus, employers should make sure to follow these steps upon receiving a letter:

  • Register for Business Services Online (BSO)
  • Input Activation Codes in BSO. This is a one-time step to access the name and SSN of the employee in question
  • Retrieve the name and SSN errors
  • Use the Social Security Number Verification Service (SSNVS)
  • Work with employee(s) to resolve the error. The SSA provides a sample Social Security Number Verification Letter employers can give to employees
  • Fix the error(s) using W-2c

*Helpful videos and thorough instructions can be found here under the “Step-by-step instruction to find and resolve errors” dropdown courtesy of the SSA.

To avoid receiving no-match letters in the future, employers should use E-Verify which checks the name, date of birth, and SSN of new employees against the SSA’s database. While E-Verify can’t find instances of identity theft, it can prevent most SSN mismatches with the SSA.

If you have any questions on how to enroll with E-Verify, please contact DecisionHR at

1-888-828-5511 and discuss with your assigned Human Resources Business Partner.

 

Unemployment Tip: Voluntary Quit for Medical Reasons

Unemployment Tip: Voluntary Quit for Medical Reasons

DecisionHR’s unemployment vendor, Employers Edge, has laid out some detailed information regarding voluntary employee quit for medical reasons. Read on to learn about the ins and outs of medical quits.

Health and medical reasons account for a significant number of voluntary separations from employment. Most states consider certain medical reasons to be “good cause” for quitting employment, and a claimant may be entitled to benefits if they quit under these circumstances. In addition, while usually related to the health of the employee themselves, medical reasons resulting in a quit for “good cause” can also be related to the health condition of a spouse or dependent child (in certain states).

As with all unemployment regulations, the specific rules vary by state. However, below is a list of the most common issues states will consider for medical quits:

If the employer requires it in their written policies, the worker should inform the employer of the adverse health condition preventing them from performing their job.
The medical reason should be substantiated by a written notice from a medical doctor. The notice should specifically state whether work is disallowed, or if work can be performed with specific restrictions, and for how long those restrictions apply.
The worker generally must give the employer the opportunity to make reasonable accommodations to meet the restrictions specified by the doctor. If work is disallowed for a certain period, most states will ask if a medical leave was available and, if so, if the worker requested one prior to quitting.

If any of these conditions were not met, there may be good grounds for protesting this type of claim as these are the most common criteria that must be met in order for the quit to be considered for good cause. For that reason, it is very important that you provide answers to each of the questions asked by your Claims Specialist with regard to the circumstances involved in a quit for health or medical reasons. They will help you determine if the state is likely to grant or deny benefits to the claimant based on the above criteria.

If all of the above conditions were met by the claimant, they will likely be considered eligible to collect unemployment. However, some states will still grant relief of charges to the employer.

The following states have provisions in their laws to allow for relief of charges to the employer when a claimant quits for legitimate health or medical reasons:

AL AK AZ AR CO
DE FL HI ID IL
IN IA KS KY ME
MA MN MS NE NV
NH NJ NM OK OR
PA SC SD TX UT
VA WA WV WI WY

*Note: These provisions do not apply to reimbursing employers

In the states that do not allow for relief of charges to the employer in the case of a medical quit, there still may be reason to protest the unemployment claim. All claimants filing for unemployment must meet multiple eligibility criteria before they can actually collect benefits. In the case of voluntary quits for health or medical reasons, the claimant must first be found to have quit for substantiated good cause. Next, they must demonstrate that they are able, available and actively seeking work. This second criteria is where many employers may still get (at least partial) relief of charges in the states not listed above.

In many cases, if a former employee quits because their health or medical condition prevented them from being able to perform their job, they will likely not be able to accept or perform other work either. When that is the case, they are not meeting all of the state’s requirements in order to collect unemployment benefits, and they will be denied benefits until they are able to meet all of those requirements. Your Claims Specialist will help you determine whether this is a likely scenario on a case by case basis.

Remember the guidelines listed above represent the most common considerations with regard to voluntary quits for health or medial reasons. However, each state has its own specific guidelines for determining both claimant eligibility and employer chargeability on these types of claims.

If you have any questions, please call DecisionHR at 1-888-828-5511 and ask to speak with your assigned Human Resources Business Partner.

 

Don’t Wait to Audit Your Exempt Workforces

Don’t Wait to Audit Your Exempt Workforces

The U.S Department of Labor has proposed a new rule that would make over one million American workers eligible for overtime pay. While there is a long road ahead until the final ruling, employers should take steps to ensure they are prepared for this potential change. Employers should audit their exempt workforces to determine whether employees qualify for white-collar exemptions under the primary duties criteria under the three different exemptions:

Executive Exemption

An employee’s primary duties must be to manage the enterprise or a department or subdivision of the enterprise, and to regularly direct the work of at least two employees. The employee must have the authority to hire or terminate, or have some influence in the hiring, terminating, or changing status of other employees.

Administrative Exemption

The employee’s primary duty must be to perform office or non-manual work directly related to the management or general business operations of the employer or employee’s customers. The employee’s duties must include the exercise of discretion and independent judgment with respect to matters of significance.

Professional Exemption

For a professional exemption, the employee’s primary duty must be work requiring knowledge of an advanced type in a field of science or learning. This knowledge is customarily acquired by prolonged, specialized, intellectual instruction and study. Employees may also be a part of a few similarly highly specialized fields such as teaching, computer analytics, and engineering.

Employers do not have to wait for the final ruling to review the duties of their employees, and it’s possible that employees currently classified as exempt fail to meet the primary duties tests. So, it could be beneficial for employers to conduct audits of exempt status employees now, even for those who earn salaries that will not likely be impacted by the Department of Labor’s proposed rule. Conducting audits can help catch any errors that are currently unknown and can prevent future mistakes. Learn more about this proposed rule change from the U.S. Department of Labor and how employers and employees will be affected.

If you have any questions, please call DecisionHR at 1-888-828-5511 and ask to speak with your assigned Human Resources Business Partner.

 

 

Managing Talent – How to Manage Millennials

Managing Talent – How to Manage Millennials

Managing talent over the next five years will be completely different than how it has been done for the past 20 years. By 2025, millennials will make up 75% of the workforce and technology will play a large role in how you attract and retain that talent pool.

So how do employers meet the changing expectations of their employees? In the past, the employer/employee relationship was motivated mostly by finances. So, if the employer was providing adequate compensation, the employee was mostly satisfied. These days, other factors are playing a larger role, such as training and career development through learning opportunities to increase the employee’s skill set. Below are three crucial aspects your company will need to take to meet the needs of today’s workforce:

 

Make it Flexible

Today, managing talent requires flexibility because many employees are working under more flexible arrangements, especially when it comes to location. With today’s technology, more people are working remote from their homes or out in the field so geographic boundaries are no longer a barrier to productivity and collaboration. This means you’re going to have to adapt to the needs of remote employees, and that includes onboarding. Leverage the technology that’s available so you can save your company money and avoid having to fly a new hire to your headquarters for their onboarding. If 10% of your workforce is remote, that can lead to some serious savings. Also, continuous onboarding is important for a remote employee, it helps them feel like they’re a part of the organization, rather than detached.

 

Take a Balanced Approach by Adopting the 4 C’s of Onboarding

Implementing the 4 C’s of onboarding is by no means an original concept, but it should be considered best practice when managing talent. The 4 C’s are: Compliance, Clarification, Culture and Connection. It’s important to note that a lot of companies pay too much attention to Compliance at the expense of the other three. To best serve your employees, balance all four of the C’s and you’ll find that your employees will be much more engaged and productive. Your new hires will be much more productive after going through an onboarding process that is enriched with learning and socialization.

 

Improve Engagement by Creating Continuous Onboarding Processes

When is the best time for your organization to start the onboarding process? We suggest right after the offer is accepted. It might seem early, but this will keep the communication flowing between you and your new hire. It will make them feel welcome and that they are already a part of the organization and the team they’ll be joining. Don’t be afraid to immerse them in your culture right away.

What other types of activities could you do throughout the year? Many companies that operate best-in-class onboarding platforms make sure to include performance goal-setting, enrollment into learning, training, and development programs, and an assessment to determine the employee’s development track. This process is also relevant to employees that transfer to another location within the company. Many of those employees have a fair amount of uncertainty about what life will be like, either in their new local community, or at a completely new company after a merger or acquisition. A formal onboarding process can help alleviate many of those concerns and help retain the talent you have acquired.

Managing talent of this new generation is going to be very different than managing the traditional workforce. These three tips should help you get ahead of the curve and keep your new hires for years to come.

If you need any additional tools or resources, please contact DecisionHR at 1-888-828-5511 & discuss with your assigned Human Resources Business Partner.