Social Security Number Verification Service

[JohnH]

An August 8 article in the NY Times says the Dept of Homeland Security is announcing that they are going to crack down on employers who hire people with false social security numbers. I know, I know - this is the 20th time such threats have been made by various government agencies and then nothing was done. But the political climate this time around may mean they plan to make a few examples and grab some headlines over the issue, especially with an election year coming up. Hopefully one of our clients won't get caught up in the snare. I'm sending all my clients info on the article and how to link to it, just as a precaution.

Here's a link to the article - http://www.nytimes.com/2007/08/08/washingt...agewanted=print

Actually I'm not opposed to enforcing the laws on the books, so this really isn't a rant about the article, but it brings to mind a question. Do any on this forum use the Social Security Number Verification Service (SSNVS) to provide this service for their clients? If so, how do you base your charges? More importantly, what type of disclaimer do you have them sign before obtaining the information for them? Or do you just direct the client to the site and leave it up to them to do their own verification? I'm posting this question in this forum and also over on the Tax Book Forum, as I'd like to hear the collective wisdom on this subject.

[BulldogTom]

Do any on this forum use the Social Security Number Verification Service (SSNVS) to provide this service for their clients?

If I remember correctly, when we looked at the system when it first debuted, you could only check on a limited number of SSN's per day. This was a real killer for the industries that illegal or undocumented workers regularly work in. Because of the seasonality of agriculture, and the large numbers of workers that you need to process in a short time, the system was a complete bust for the ag industry.

Disclaimer, my experiences with this were in the early part of this decade. It may have changed by now. I think it was around 2002-3?

Tom

Lodi, CA

[JohnH]

Tom:

I did a little reading up on the service after posting the question, and there are several limitations.

1) You can only verify 10 at a time in real time, but there's no limit to the number of batches of 10 you can do. Larger batches can be submitted electronically and results obtained overnight.

2) It cannot be used to verify the number BEFORE the person is employed - only after they are on the payroll. (who came up with this one?)

3) It cannot be used for non-wage purposes. (That's reasonable, but I'd think a third party wouild want to lock the client pretty tightly into verifying the reasons for asking for verification)

4) The employer cannot take any adverse action based solely on the results obtained from SSA. Doing so can subject the employer (and maybe the third party if I'm reading it right) to anti-discrimination or labor law sanctions.

At first blush, it looks like a minefield for the employer and/or the third party doing the verifications. On the other hand, if they do step up enforcement this may become a necessity. In any case I'm still looking for input/opinions.

[Pacun]

I don't provide any verification service. Immigration laws says it is illegal to hire undocumented aliens. On the other hand, the government wants you to hire and then verify.

So, you hire 100 employees, and put them on payroll, then you verify their social security number. After you get the results, 40 of them are using fake SS#s, you cannot fire them because

"4) The employer cannot take any adverse action based solely on the results obtained from SSA. Doing so can subject the employer (and maybe the third party if I'm reading it right) to anti-discrimination or labor law sanctions." At this point, the employer has admitted (somehow) that he hired illegal aliens. It seems that this system will not work.

Unless a law is enacted and signed with clear meaning, the current system is a waste.

Let's see if I can give an example:

Immigration came to a restaurant and arrested 11 illegal aliens and want to penalize the employer big time. The owners claim their innocence, but they never used the verification system. This is the first warning that they get from the U.S. Government that something is wrong with their hiring practices.

Immigration came to another restaurant... exactly the same situation (11 illegal aliens arrested). The owners claim their innocence and they have used the verification system. This is NOT the first warning that they get from the U.S. Government that something is wrong with their hiring practices.

To which restaurant owner do you think a judge will give a break?

[TAXBILLY]

I make sure all of my clients have an I-9 on file for each employee.

taxbilly