In Section 3, which is reserved for reverification and rehiring employees, record the new name and sign the form. Citizenship and Immigration Services (USCIS) recommends that HR managers record these changes on the Form I-9.
#NAMELY PAYROLL UPDATE#
When it comes time to generate W-2s, you’ll want to make sure the employee names are accurate on those forms as well.Įmployers are not legally required to update work authorization records after a name change, but doing so is best practice. Speaking of HR technology, be sure to double check that the employee’s name has been updated throughout the system. Have employees fill out a new form, and load any changes into your payroll and HR system. If a name change is involved, doing so isn’t just smart-it’s required. It’s best practice to have employees review their W-4 whenever their personal or financial situation changes. Pictured: Personal Allowances Worksheet on the Form W-4 Getting this right matters, since withholding too few taxes might mean a big balance due when the employee files annual returns. Individuals are asked to fill out a “personal allowance worksheet” based on whether marital status, whether the employee’s spouse works, and other personal factors. The form determines how much federal income tax should be withheld from an employee’s paycheck. In case you need a refresher, the Form W-4 is a required part of the employee onboarding process. This is where another federal agency comes into play the Internal Revenue Service (IRS) requires that the name listed on an employee’s W-4 and W-2s exactly matches what’s listed on the employee’s social security card. Once the employee’s name change is squared away with the Social Security Administration, the ball is back in your court. Step 2: Update Form W-4 and Your Payroll System Once the employee’s application for a new Social Security card has been received, the agency will typically mail him or her a new card within 10 business days. SSA office hours are limited, so we recommend letting the employee take time to visit during working hours if necessary. The agency provides an easy-to-use office locator on their website that you can forward to employees. This is the most important step-let the employee know that as far as the federal government is concerned, the employee’s social security card is considered a source of truth for a number of items, including their payroll taxes.īecause of SSA rules, the individual will have to appear at a local office to process the change. You’ll need to make sure that the affected employee has communicated the update with the Social Security Administration (SSA). HR isn’t alone in this: it takes two to get the name change process rolling. Follow these helpful tips whenever an employee goes through a legal name change. What’s in a name? When it comes to HR and payroll, a lot.
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