For a number of reasons, a newly arrived Foreign National employee may not receive their Social Security Number (“SSN”) from the Social Security Administration by the time they are scheduled to begin work in the U.S. While this may make things a little more complicated for payroll and benefits, employers can, and should, allow work-authorized employees to start before their Social Security Number (“SSN”) is received. This is a
common occurrence with newly arrived foreign national employees and employers should be aware of the following: An SSN is not required to complete the Form I-9 employment authorization verification UNLESS the employer participates in E-Verify, however
E-Verify rules specifically prohibit employers from delaying an employee’s start date until a Social Security Number is received. E-Verify instructs employers to allow the employee to start as
planned, complete the Form I-9 timely and enter wait to enter the case in E-Verify once the Social Security Number is received. Additionally, for employees who have obtained work authorization benefits through various visa statuses, delaying an employee’s start date until they receive their Social Security Number, rather than when they were scheduled to begin work could jeopardize that visa status.Finally, delaying work for pay for work authorized foreign nationals until a social security number
is received may be considered a discriminatory employment practice and expose the employer to liability. This is a common occurrence for newly arrived foreign nationals, and, as such, most payroll and benefit providers have developed processes to accommodate this. Each provider’s process may vary somewhat so employers should contact their providers to determine what those processes are. While it may initially appear easier, for purposes of payroll processing and benefits enrollment, just to delay an employee’s start date they receive
their Social Security Number, doing so may cause many more problems than it solves.
§ 422.120 Earnings reported without a social security number or with an incorrect employee name or social security number. (a) Correcting an earnings report. If an employer reports an employee's wages to SSA without the employee's social security number or with a different employee name or social security number than shown in SSA's records for him or her, SSA will write to the employee at the address shown on the wage report and request the missing or corrected information. If the wage report does not show the employee's address or shows an incomplete address, SSA will write to the employer and request the missing or corrected employee information. SSA notifies IRS of all wage reports filed without employee social security numbers so that IRS can decide whether to assess penalties for erroneous filing, pursuant to section 6721 of the Internal Revenue Code. If an individual reports self-employment income to IRS without a social security number or with a different name or social security number than shown in SSA's records, SSA will write to the individual and request the missing or corrected information. If the employer, employee, or self-employed individual does not provide the missing or corrected report information in response to SSA's request, the wages or self-employment income cannot be identified and credited to the proper individual's earnings records. In such cases, the information is maintained in a “Suspense File” of uncredited earnings. Subsequently, if identifying information is provided to SSA for an individual whose report is recorded in the Suspense File, the wages or self-employment income then may be credited to his or her earnings record. (b) Returning incorrect reports. SSA may return to the filer, unprocessed, an employer's annual wage report submittal if 90 percent or more of the wage reports in that submittal are unidentified or incorrectly identified. In such instances, SSA will advise the filer to return corrected wage reports within 45 days to avoid any possible IRS penalty assessment for failing to file correct reports timely with SSA. (See also § 422.114(c).) Upon request, SSA may grant the employer a 15-day extension of the 45-day period. If you hire employees, then there is information that you need to secure for your records and forms that you must complete including the following: You must verify that each new employee is legally eligible to work in the United States. Have the employees you hire fill out Form I-9, Employment Eligibility
VerificationPDF. Back to top Employee's Social Security Number (SSN)You are required to get each employee's name and Social Security number (SSN) and to enter them on Form W-2 (this requirement also applies to resident and nonresident alien employees). If your employee does not have their social security card readily available, then the Social Security Administration (SSA) offers Social Security number (SSN) verification and quick access to relevant forms and publications. 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 that begins with the number "9" and is formatted like an SSN (NNN-NN-NNN). Note: An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. Back to top Employee's WithholdingTo know how much income tax to withhold from employees' wages, you should have a Form W-4, Employee's Withholding Certificate, on file for each employee. Ask all new employees to give you a signed Form W-4 when they start work. Make the form effective with the first wage payment. If employees claim exemption from income tax withholding, then they must indicate this on their W-4. The amount of income tax withholding must be based on filing status and withholding adjustments as indicated on the form. If a new employee does not give you a completed Form W-4, then withhold tax as if the employee is single. Additional withholding may be required on wages paid to non-resident aliens. A Form W-4 remains in effect until the employee gives you a new one. If employees claim exemption from income tax withholding, then they must give you a new Form W-4 each year. If an employee gives you a Form W-4 that replaces an existing Form W-4, then begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date you received the replacement Form W-4. For exceptions and invalid Forms W-4, refer to Publication 15, (Circular E), Employer's Tax Guide. You may also refer your employees to the tax withholding estimator. Remember that this application is to help employees to ensure that they do not have too much or too little income tax withheld from their pay. It is not a replacement for Form W-4, but most people will find it more accurate and easier to use than the worksheets that accompany Form W-4. They may use the results of this program to help them complete a new Form W-4, which they will submit to their employer. Special rules may apply to agricultural employers. For more information, please refer to Publication 51, (Circular A), Agricultural Employer's Tax Guide. Back to top Related TopicsPublicationsCan you get paid in the US without a Social Security number?You need an SSN to get a job, collect Social Security benefits, and receive some other government services. If you're temporarily in the United States to work, your employer will ask for your SSN.
What do you do if you don't have a Social Security number?If you do not have a Social Security Number (SSN), you do not need to enter anything in the Social Security Number field (it is not required). This field refers to U.S. citizens only.
How can a US company hire a foreign employee?US companies can hire foreign workers by applying for the relevant certification from the US Department of Labor. The certification will be determined by the occupational requirements of the vacancy. Upon certification approval, the talent sourcing and interview process can begin.
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How to pay an employee without a social security number
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