Saturday, February 26, 2011

When it gets personal

 From the Examiner:

 From time to time, an employer or a recruiter might ask to see your W2 or 1099 earnings from previous years. There are numerous reasons to comply and provide the documents. There are just as many reasons to find another solution. The difference is, supplying the documentation can lead to problems, and those problems can be more severe for the employee than the employer.

In the Nashville market, it is rare to have an employer or recruiter ask to see documents proving previous wages. However, it does happen from time to time, depending on industry. Specifically, out-of-state based corporations hiring for the Nashville area are more likely to ask for tax documents to support wage claims, than are local companies.

Reasons not to provide wage documentation:

1. Personal Nature of the Information
There are several reasons the author advises against providing this documentation. Not the least of which is the personal nature of the information. Asking for a candidate's tax documents is no different that coming out and saying they do not believe the candidate is telling the truth. That's no way to start an employment relationship.

Interview questions that are too personal (like asking for wage documentation) are good indicators of unprofessional interviewers. If a company or hiring manager won't take the time to learn how to properly conduct an interview, do you really want to work for them?

2. Legal ramifications of discrepancies.
The author checked with the Tennessee Department of Labor and Workforce Development. It is not illegal for a prospective employer to ask for these documents. Still, the candidate can find themselves in hot water legally if wage documentation is provided.

W2 fraud is a crime, punishable by law. The IRS is generally the government agency that cracks down on such crime. The problem is, that allowing an employer to obtain wage documents can possibly make a candidate look like a criminal, even when no crime has occurred.

Suppose a candidate provides a W2 to a prospective employer, that was given them by a current or previous employer. Suppose that employer verifies the W2, either with the other company, or with the IRS. Now suppose that the company that issued the W2 sent an amended W2 to the IRS, negating that one... but forgot to send the candidate the amended W2. Now, it looks like the candidate fabricated a false W2. The previous employer is free of blame, because they sent the correct document to the IRS, but the candidate could be facing fines and prison time!

Another possibility lies with company error. Suppose an employee's W2 is just $0.01 different than the one sent to the IRS. Or worse, the company completely goofs, and sends totally different amounts to the employee and the IRS. Hey - it can happen. Companies are not perfect, because they are staffed by imperfect people. Again, this situation can make it look like the employee fabricated the document.

3. Wage suppression.
The last major reason a candidate should not provide wage documents is wage suppression. Frequently, companies that want previous wage documentation are trying to "get away" with only paying the candidate marginally more (if not the exact same) than the candidate is/was making. 

As a candidate for the position, you must sell the company on your value as an employee. If they cannot be made aware of that value without "documentation," then that value really never will exist in their minds. This reduces your value to them - both as a person, as well as an employee.

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