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IMMIGRATION REFORM LEGISLATION PROPOSES INCREASED PENALTIES

HomeWork Solutions, Inc., October 2005

Proponents of stepped up immigration enforcement have proposed substantial increases in employer penalties when Forms W2 are filed with incorrect employee Social Security Numbers.

HR3938 Enforcement First Immigration Reform Act of 2005, introduced by Representative J.D. Hayworth (R-AZ) proposes sweeping changes to the roles of the Social Security Administration and the Internal Revenue Service pertaining to immigration enforcement.

Employer accountability for the hiring of non-documented workers is dramatically increased. Under Hayworth's bill, hiring one undocumented immigrant could result in a penalty of up to $50,000 and a jail term of up to one year. Additionally, the fines for filing false W2 data (for example, using a Social Security Number not assigned to the worker) would increase from the current $50 per form to $500 per form. The Social Security Administration and the Internal Revenue Service currently sit on the sidelines of immigration enforcement efforts, legislatively prohibited from sharing information on false W2s with Homeland Security's Immigration and Customs Enforcement Agency (ICE). Under the proposed legislation, the SSA and IRS would have defined responsibilities to report abuse to ICE and the Congress.

Passage of the legislation is far from certain. What it does highlight, however, is increased public sentiment to put some teeth in immigration enforcement in light of an active terrorist threat and increasing chaos on our borders. Some enforcement changes seem inevitable in the near future.

The Social Security Administration previously has identified the name/number mismatch problem as the main reason for individual wage record discrepancies. They have increased efforts in recent years to make employers responsible and liable for accurate wage reporting.

Employers are encouraged to confirm that their employee's name on file with HomeWork Solutions exactly matches the name as printed on the employee's Social Security card.

To check the name/SSN match of up to 5 employees, there is a toll free number for employers, 800-772-6270. SSA will request the caller's name, Federal Employer Identification Number (FEIN), and full telephone number (area code included). The caller is then to provide current or former employee name(s), SSN(s), date(s) of birth, and gender.

 Text of Proposed HR3938

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