Q. "What is the procedure when an employee changes their name?"
Answer:
The short answer is you will want to ensure your payroll system, tax information, benefit plans, and any personnel records (i.e., phone lists, email systems, other employee lists/systems, etc.) are updated.
Additionally and in more detail:
Prior to updating the name in your payroll system, make sure the employee provides a copy of an updated Social Security card. The old name should remain in your payroll system until they can.
Have the employee complete a new W-4. The IRS requires the name on their Social Security card match the name on W-4 and W-2 forms.
Check with your insurance broker regarding benefit plan updates. They may want the employee to complete new beneficiary forms with their new name.
Though employers are not required to update Form I-9 when an employee changes his or her name, U.S. Citizenship and Immigration Services (USCIS) recommends employers maintain correct information on I-9s and note any name changes in Section 3 of the form. Click here for additional information.
Note: While documentation of the reason for a name change may be requested and attached to the I-9 form, new I-9 documentation to prove eligibility to work in the U.S. may not be requested due to a name change only. For example, if a name change is due to marriage, a marriage license or certificate would be acceptable; for a divorce, a divorce decree, etc.