Q. "What do I need to update when an employee changes their name?"
Answer:
By the end of the process your payroll system, tax information, benefit plans, and any personnel records (i.e., phone lists, email systems, and other employee lists/systems, etc.) should be updated, but here is some guidance on when and how to update:
Prior to updating your payroll system, make sure the employee provides a Social Security card with their new name. The old name should remain in your payroll system until this is provided.
The IRS requires the name on the Social Security card match the name on W-4 and W-2 forms, so the employee will also need to complete a new W-4.
Employers are not required to update I-9s when an employee changes their name, but the USCIS recommends employers maintain correct information on Form I-9 and note any name changes in Section 3 of the form.
Speak with your insurance broker to see if they want the employee to complete new beneficiary forms, as well.