When hiring a brand new worker, most employers perceive that nationwide origin is a protected class that can not be discriminated towards. In addition they perceive that they’re required to make use of the I-9 course of to confirm work eligibility in the US and that I-9 asks for an worker’s Social Safety quantity (SSN), amongst different issues.
So, what occurs when a noncitizen applies and doesn’t have an SSN? Are you able to rent that individual?
The quick reply is: You can rent that individual so long as she or he has work authorization, however the individual continues to be legally required to acquire an SSN if she or he has not but accomplished so. Moreover, you will want that quantity rapidly; sometimes, the individual should apply inside the first week of employment and furnish the quantity inside not more than 90 days.
You’ll need to make use of the person’s SSN to report his or her wages to the Inside Income Service (IRS). That is true for each workers and contractors, as even contractors want an SSN to finish their W-9 for the employer.
What to Do if a New Rent Doesn’t Have an SSN
In case your group hires somebody who has not but utilized for an SSN, make sure the individual completes the SS-5 type and turns it in instantly. Make a copy of the letter the person receives from the Social Safety Administration (SSA), noting its receipt of the applying, and comply with up with the worker for the SSN.
As soon as the quantity and card are acquired, verify that the identify on the individual’s new social safety card matches the hiring paperwork you’ve already acquired, and embrace the SSN in your whole payroll paperwork.
In case you rent an worker who has not but acquired his or her SSN, you’ll nonetheless want to finish the I-9 type on time. On the shape, you will want to notice that it was utilized for and fasten documentation. As soon as the worker receives the quantity, you will want to replace the I-9.
If for some cause the worker’s SSN utility is denied, the employer can not rent the person. No different numbers will be substituted for the SSN. It might be tempting to just accept a person taxpayer identification quantity (ITIN), however don’t. According to the IRS:
“Don’t settle for an ITIN instead of an SSN for worker identification or for work. An ITIN is simply accessible to resident and nonresident aliens who should not eligible for U.S. employment and want identification for different tax functions. You possibly can determine an ITIN as a result of it’s a 9-digit quantity, starting with the quantity ‘9’ and is formatted like an SSN (NNN-NN-NNNN).”
For any worker who does apply for an SSN, nonetheless, so long as you comply with the suitable steps, you have to be within the clear. In case you discover your group on this state of affairs, you might want to seek the advice of with a tax adviser to substantiate you’re submitting all paperwork accurately, particularly if you could submit payroll paperwork for a person who doesn’t but have an SSN.
There are procedures in place for this situation that must be adopted. For instance, on the W-2, workers want to write down in “utilized for” within the SSN field. In case you’re submitting kinds electronically, sometimes all zeros are used instead of the SSN whilst you’re ready for it to be issued. Employers might want to submit corrected data when the SSN is acquired.