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Q&As from the American Payroll Association’s Annual Congress

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Here are questions put to reps from federal agencies at the American Payroll ­Association’s Annual Congress, held this year in Las Vegas.

Employer’s conundrum: A rehired employee, new SSN

Question: A longtime employee resigned at the end of 2014 and received his final wages in January 2015. He was rehired under a different name and Social Security number (SSN). Should we reverse the January transaction and add pay data to his new, legal ID, so that all 2015 wages will be consolidated into one W-2? Or do we leave his January wages under the original name/SSN and issue two W-2s for 2015?

Answer: You should combine all of the employee’s 2015 wages on one W-2 under his new name and SSN. Then file Forms W-2c/W-3c for all prior years to correct his name/SSN combination. You can use the SSA’s SSNVS app to ensure that the employee’s new ID is legal; be sure to input his date of birth. (Source: Social Security Administration)

How much child support is withheld from contractors?

Question: Does the Consumer Credit Protection Act (CCPA) apply to independent contractors?

Answer: The CCPA applies to employees, not independent contractors. If you’re located in a state that requires withholding from independent contractors, the supplemental information section of the income withholding order contains information on the withholding limits you will need. (Source: Office of Child Support Enforcement)

What is the employment status of green card holders?

Question: We have an employee who presented a green card that expires later this year. Should we reverify this person?

Answer: This is a common mistake. Green card holders are never reverified, even though there is an expiration date on the card. Passports also expire, but you don’t reverify those employees. If you do reverify, you may be discriminating against those employees. (Source: Office of Special Counsel for Immigration-Related Unfair Employment Practices, Department of Justice)

What counts as a List B document?

Question: An employee presented a state-issued driver’s license that states it is “not for federal identification.” Can we accept this as a List B document for I-9 purposes?

Answer: Yes, for I-9 purposes, this document is acceptable. (Source: Citizenship & Immigration Services)

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