What do I need to do when an employee has a name change?

When an employee has a name change, employers should address several administrative issues. Prior to updating the employee's name in the organization's payroll system, an employer should require the employee to provide a copy of an updated Social Security card with the new name. To avoid Social Security mismatches, employers should ensure the name in their payroll system matches the one on the employee's current Social Security card. If an employee has not updated his or her Social Security card, the old name should remain in the employer's payroll system until the name is updated. Employees will also need to complete a new W-4. The Internal Revenue Service (IRS) requires that the name on the Social Security card match the name on W-4 and W-2 forms.

According to the U.S. Citizenship and Immigration Services (USCIS), though employers are not required to update Form I-9 when an em­ployee changes his or her name, USCIS recom­mends that employers maintain correct information on Forms I-9 and note any name changes in Section 3 of the form. Furthermore, I-9 regulations do not require that an employee present employers with documentation to show that the employee changed his or her name, but employers may ask employees for the basis of the name change to be reasonably assured that the employee's identity and claim of a name change can be substantiated from reliable sources. Employers may ac­cept evidence of the name change, and USCIS recommends that employers keep copies with Form I-9, so that employer actions are well documented if the govern­ment asks to inspect the employer's Forms I-9.

Documentation of the reason for a name change may be requested and attached to the I-9 form, but new I-9 documentation to prove eligibility to work in the U.S. may not be requested due to a name change only. If, for example, a name change is due to marriage, a marriage license or certificate would be acceptable; for a divorce, a divorce decree; or, if due to a religious conversion, employers could accept a letter from the employee's clergy or other religious representative.

Benefits plans will need to be updated with the new name. Employers may want the employee to complete new beneficiary forms so that the new name is listed on the form. If the name change is due to a family status change (e.g., marriage or divorce), the employee may also wish to make a midyear change to the benefits plan to add or drop dependents consistent with this family status change. If the plan permits these types of midyear election changes, follow your normal procedure for completing new paperwork and obtaining any required proof of the family status change. (Note this proof may have already been requested for I-9 purposes.)

Employers will also want to update personnel records, phone lists, e-mail systems, and other employee lists and systems that include employee names. Where applicable, employers should cross-reference the previous name and new name so that a search using either the new or old name will retrieve the same records.