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What is an Employee Verification Service and Why It Matters
Definition & Meaning
An employee verification service (EVS) is a system that checks the accuracy of employee information, specifically their names and Social Security numbers (SSNs), against the records maintained by the Social Security Administration (SSA). This verification occurs before employers submit Forms W-2, which report wages and tax information. Ensuring that the information matches SSA records is crucial, as discrepancies can lead to additional costs for employers and may affect employees' future benefits, including retirement and disability payments.
Table of content
Legal Use & context
Employee verification services are primarily used in employment law and human resources. They help employers confirm the identity of their employees and ensure compliance with federal regulations regarding tax reporting. This process is crucial for maintaining accurate payroll records and protecting employees' rights to benefits. Employers can utilize legal templates from US Legal Forms to manage their employee verification processes efficiently.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company submits its W-2 forms but discovers that one employee's SSN does not match SSA records. As a result, the employer incurs additional processing fees, and the employee may face issues with uncredited earnings.
Example 2: An HR department uses an employee verification service to ensure all new hires have valid SSNs before processing payroll, thereby avoiding potential future complications. (hypothetical example)
State-by-state differences
State
Verification Requirements
California
Employers must verify SSNs and provide additional documentation for employee eligibility.
Texas
Verification is required, but there are fewer strict guidelines compared to California.
New York
Employers must verify SSNs and may face penalties for non-compliance.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Background Check
A broader investigation into an individual's history, including criminal records, employment history, and credit reports.
Employment Verification
Specifically confirms an individual's employment history and qualifications, which may or may not include SSN verification.
Common misunderstandings
What to do if this term applies to you
If you are an employer, ensure you use an employee verification service to confirm your employees' information before submitting tax forms. This can help you avoid additional costs and complications. Users can explore US Legal Forms for templates that can assist in managing employee verification processes effectively. If you encounter complex issues, consider seeking professional legal advice.
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