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.

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 ATX Forum, as I'd like to hear the collective wisdom on this subject.

[DaveO]

We don't offer any such service.

The last time I read up on this is was illegal to use it as a pre-employment screen. At least that was my impression at the time. Seems pretty useless if that's the case but really doesn't surprise me at all. Maybe someone with more current knowledge will weigh in.

[taxmandan]

SSN verification

I'm going thru the validation process to access the system right now. You are correct that it is only for use after someone has been offered employment, not to be used for pre-employment screening. You have to have a signed I-9 before accessing and checking the information. Getting signed up to use it is a PITA, have to complete a lengthy training module and take a test to gain access rights. Something that small employers won't want to fiddle with, so we might assist them. I may or may not end up using the system, we have payroll clients who might need someone to do this check for them in the future. As for fees, I haven't decided yet, but it will be $35-$50 per person.

[oceanlovin'ea]

I use the sight

I do payroll for 2 companies who have rather transient employees and a lot of turn around. When they turn in the payroll, I verify the social security numbers.

After you have signed up for the service, checking the ssn is so simple. It takes a couple of minutes.

I have found one digit off numbers, different names (maiden instead of married name) as the most recurring problem. But most of the time they have been correct. If they aren't, the employer can get the correct number when they give them their payroll check.

It sure will make end of year and doing W-2's much easier for me.

Linda F

[Kong]

SSN verification

State of Arizona on 01/01/2008 will require verification. If employer is caught employing any individual without a valid SSN, employer will be subject up to a 10 day Business suspension on First offense. Second offense within a Five year period, revocation of their business license. Which means business is closed down period. I have tried to market this service to existing and new clients and everyone wants to wait till after 01/01/2008.
I do not have any happy campers. I plan to bill at around $25.00 or $30.00. But honestly I do not believe anyone will pay more than $15.00. I plan on having employer sign agreement stating that agency providing service (me) will not be identified as I do not want my business vandalized or worst burned down to the gound.

[Corduroy Frog]

We're not in Control

Remember only the general population supports the idea. The government, by its inaction, does not. Also makes no difference who you vote for.

The current administration wants to increase the influx of cheap labor, not control it.
Your fee for calling will be a moot point. If the SS# database access proves to be effective at controlling illegal laborers, it will be either summarily shut down, or ordered not to respond by the courts. Arizona's effort is noble, but will fall short.

The tax-related part of this is I'm assuming this SS# telephone service is for those of us who provide payroll services. In addition to burning down (and I don't know how valid that is), there is liability. I believe the system will ultimately break down, and those of us who provide the service will be in the middle of legal squabbles -- wrong #s, wrong people, mismatches, database errors, etc. that it might be the wiser for employers to do their own.

[JohnH]

I think it's a potential landmine

The more I study it, the less appealing it becomes to offer this service for a fee.

Having your business vandalized or burned down is a real concern, but even the basics are scary.

First of all, you can't prescreen applicants - it can only be used to verify people already hired. Secondly, the employer is prohibited from taking any punitive action based on this info alone - it is simply a jumping off point to alert the employer they need to do more checking. So if you find that a number doesn't match, the client has paid you to create more work for them to do - I think many clients won't see the value in this. If they take a short cut such as discharging someone without following proper steps, now you're potentially in the middle of a wrongful discharge squabble. Maybe even in trouble with the government over something your client did.


I'm beginning to think that I what I would charge to do this is more than the market will bear, assuming I'm willing to do it at any price. It's appearing that unless the process is mandated and some reasonable safeguards put into place to allow for honest errors, it may be better to just emphasize that the client do their due diligence with the I-9's and wait for the notification letters from SSA if there is a problem. Better to charge the client for fixing a problem the government tells you you have and orders you to fix than to buy trouble at the outset. As for doing the checking at the outset, it may be preferable to have the client use the services of a far-away, impersonal service specializing in this sort of thing and having huge liability protection.

[oceanlovin'ea]

Getting scared

Now you are all scaring me. I thought this was something good because I would have accurate ssn for W-2's at the end of the year. It also makes sure that the employer has gotten the correct forms filled out.

But you are making me nervous. Maybe I'll quit verifying the numbers. I don't want any problems from their employees, current or past.

Linda F