If a newly hired employee does not have an SSN, what should be done?

If a newly hired employee does not have an SSN, what should be done?

• A. The employee must apply for an SSN
• B. The employee cannot be hired
• C. The employee can start work and apply later
• D. Use an ITIN

Answer: (A)

The essential point is that payroll and tax reporting rely on a valid Social Security Number. If a newly hired worker doesn’t have an SSN, they need to apply for one with the Social Security Administration so wages can be properly reported and payroll records matched to the correct person. An ITIN cannot be used as a substitute for an SSN for employment purposes, and starting work before obtaining an SSN can cause compliance issues. So the appropriate step is for the employee to apply for an SSN; once they have it (and pass any required work-authorization checks), the hiring and payroll process can proceed.

The essential point is that payroll and tax reporting rely on a valid Social Security Number. If a newly hired worker doesn’t have an SSN, they need to apply for one with the Social Security Administration so wages can be properly reported and payroll records matched to the correct person. An ITIN cannot be used as a substitute for an SSN for employment purposes, and starting work before obtaining an SSN can cause compliance issues. So the appropriate step is for the employee to apply for an SSN; once they have it (and pass any required work-authorization checks), the hiring and payroll process can proceed.