Is it Harder to Hire Someone With an ITIN vs. SSN?

by - July 29, 2018

A taxpayer ID number comes in several different forms, from a Social Security Number to an Employer ID Number (EIN) and now, with the increasing influx of immigration into the United States, something called an Individual Tax Identification Number (ITIN). It’s important to understand the difference between these numbers and what they are needed to accomplish. 


In a Word, Yes

According to the IRS, an ITIN number is not valid for demonstrating eligibility for employment within the United States. Rather, it is only used for identifying nonresident or resident aliens for tax reasons, and they are used for immigrants who are not eligible to obtain a Social Security Number or to work inside the U.S. Employers should not hire workers without an SSN; it’s important to understand that an ITIN does not take its place for the purposes of employment. 

What’s the Difference? 

A Social Security Number (SSN) is different from an ITIN for many reasons. First, a Social Security Number can only be attained by U.S. citizens, who reside and are eligible to hold employment within the country. This number is used for many different ID requirements, but filing federal tax returns is certainly one of them, and so is demonstrating eligibility for work. In fact, employers should be sure to have a copy of all employees’ social security cards on file for their records.

An ITIN or Individual Tax Identification Number, on the other hand, is assigned to resident and nonresident aliens who, for some reason, need to be implicated on a federal U.S. tax return but are not able to acquire an SSN or hold employment in the U.S. This is a number used solely for tax purposes, and does not indicate any other type of proper identification.


More Information 

To learn more about ITIN renewal or other facts about tax ID numbers, visit the ITIN W7 application website today and take advantage of the resources offered. Consider  filling out the W7 form online and get the process started. 

You May Also Like

0 comments

Klook

Klook.com

@paulapinkikay