Can I Hire an Employee Without a Social Security Number?

Simply put, no. A person needs a Social Security Number in order to legally work in the United States.

The information out there can be confusing!  In this article we break down the important acronyms and help you understand it clearly.

What is a Taxpayer Identification Number (TIN)?

A Taxpayer Identification Number (TIN) is a catch-all term for the ID numbers used for the U.S. Tax System. These can be issued by the Internal Revenue Service (IRS) or Social Security Administration (SSA). TINs include both Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN) and Employer Identification Number (EIN).

What is a Social Security Number (SSN)?

A Social Security number (SSN) is a 9-digit number issued by the Social Security Administration (SSA) that helps to identify individuals for tracking financial information and wage payments.

When hiring an applicant to be employed in the United States, employers need to verify that they are eligible to work here. You can verify employment eligibility with a person’s Social Security Number.

The SSN is then used to report the employee’s annual wage to the Internal Revenue Service (IRS) and Social Security Administration (SSA), as well as file state and local taxes.

Your applicant can legally work before having a Social Security card only if they are eligible to receive one.  Upon hire, they will need to immediately apply for one and provide it to you once available.

Who is eligible for an SSN?

The Social Security Administration (SSA) assigns Social Security numbers (SSNs) to U.S. citizens, permanent residents and temporary nonimmigrant workers in the United States.

• A U.S. Citizen is a person born in the United States or its territories like Puerto Rico, Guam and the U.S. Virgin Islands, has a parent who is a U.S. citizen or were born in another country and then naturalized (they are at least 18 years old and have been a permanent resident of the U.S. for at least 5 years or 3 years if they are married to a U.S. citizen)
• A Permanent Resident is a person who is permanently allowed to live and work in the US. They could also be referred to as a Green Card Holder, Lawful Permanent Resident or Permanent Resident Alien
• A Temporary Nonimmigrant Worker is a person who permanently resides outside of the U.S., but is temporarily visiting the U.S. for work, study or business

If your new hire does not have a SSN and are eligible for one, they must apply for one using Form SS-5 from the SSA. They will also need to submit evidence of their identity, age, and U.S. citizenship status.

If they are not eligible to obtain a SSN, they are not legally able to work in the United States. 

Please note, employers who accept an ITIN rather than a SSN for employment verifications can face penalties from the IRS. So be sure to not use their ITIN on their W2 in place of their SSN.

What is an Individual Tax Identification Number (ITIN)?

Similar to a SSN, an ITIN is a 9-digit number. The difference is it is issued by the IRS to residents and nonresidents of the U.S. who are not eligible for a SSN, but need to file taxes and claim tax refunds.

An ITIN is not only used for tax purposes, but also as proof of residency, obtaining a driver's license, opening a bank account (which will help build credit), getting a mortgage, and saving for retirement.

However, an employer must have a Social Security Number (SSN) and not an ITIN for wage payment.

According to the IRS, “You are required to get each employee’s name and Social Security Number (SSN) and to enter them on a Form W-2. Do not accept an ITIN in place of an SSN for employee identification or for work. An ITIN is only available to resident and nonresident aliens who are not eligible for U.S. employment and need identification for other tax purposes. You can identify an ITIN because it is a 9-digit number, beginning with the number “9” and is formatted like a SSN (###-##-####).” 

My Employee is an Legal Immigrant with ITIN

Legal immigrants with an ITIN may hold a valid work authorization. You must ask them to provide the documentation of their right to work in the US and provide them with an I-9 Form to be completed.

As the employer, you must complete and sign Section 2 of the I-9 form within 3 business days of the date of hire.

If your employee has valid work authorization, can satisfy the I-9 requirements, but they just arrived in the US, then they should file for an SSN.

If your new employee cannot provide valid work authorization or the authorization is expired, you legally cannot continue to employ them.

Conclusion

You cannot legally hire someone without a Social Security number in the United States. 

As an employer, it is your responsibility to require your workers to apply for a Social Security number and card. If your new employee has applied, but has not received a Social Security number, get the following information from your employee:

• Full name
• Address
• Date of birth
• Place of birth
• Father’s full name
• Mother’s maiden name
• Gender
• Date he/she applied for a Social Security number

If your employee needs to request a Social Security number for the first time or needs to request a copy of a lost or stolen card, visit the Social Security Admin website here.

Have any questions or interested in learning how MegaPay can help you with new hires? Let's chat!