no social security number

Is there a way to bypass the need for a social security number for employment/payroll purposes? I had a prospective new employee tell me that she/he did not have a social security number for religious reasons. She/he wants to be paid in cash and she/he knows of other people who work and get paid without a social security number. Background checks (criminial history), new hire reports, and wage reporting all require a social security number.

This is my first post to the forum. Any insight you may have will be appreciated.

tmorr

Comments

  • 15 Comments sorted by Votes Date Added
  • In my opinion something is wrong. I would not proceed with hiring this person. My payroll service requires a SS# to pay. They also come back and let us know if the SS# is bogus or it belongs to someone else.
  • Run, don't walk away from this candidate. S/he sounds like one of those individuals who is trying to circumvent the IRS for "religious" reasons. You are buying yourself nothing but trouble (and BIG trouble) if you acquiesce to this scheme. Your company's liability is HUGE, regardless of what this person thinks.
  • Parabeagle is absolutely right. The IRS and your state, if you have state income tax, require you to withhold payroll taxes and to turn over those taxes to them. None of these schemes to avoid taxes have been upheld in the courts and if you try to cooperate with this scheme, the IRS will look at your company. Incidentally, it is a criminal violation to not pay withholding taxes to the IRS. Any check signer, who signs a check to anyone else after the taxes are determined to be owing to the IRS, is personally and criminally liable for those taxes. They don't usually do it, but theoretically they could walk into your place of business and take those signers away in handcuffs.

    Do not do this.
  • Welcome to the forum, tmorr! I have heard of an ITIN - an Individual Tax Identification Number - that can be used in place of a SSN. I don't know much about them, though. Regardless, I'm guessing the word TAX means just that - the IRS uses it to track people without SSNs for tax purposes. I would also refuse to pay this person cash.

    A yahoo search yielded this information - there is an IRS form W-7 that says an Individual Tax Identification Number (ITIN) can be issued ONLY if a person does not have, or is not eligible to obtain, a U.S. social security number (SSN), and it notes that getting an ITIN does not change immigration status or right to work in the United States and does not make you eligible for the earned income credit. It says "You are eligible for an SSN if you are a U.S. citizen or if you have been admitted by the United States for permanent residence or U.S. employment."

    Here's the form. [url]http://www.irs.gov/pub/irs-pdf/fw7.pdf[/url]

    So, I'm guessing your person wouldn't be eligible. Long post short, I'd tell this person (nicely, of course) that they'll have to make their political/religious statements elsewhere.
  • I would love to ask this person if possible to please give you the names of the other employers that do this and you will call them and see how they handle it. I bet, either they can't give you the names, won't give you the name, or you will find that they are individually owned small businesses that may pay everyone in cash (like a house cleaning service) and are breaking all types of laws (which you could in turn say to this applicant that you can't do this.)
    Anyway, I agree with the others... I feel that this person is using religion to hide their unwillingness to pay taxes or get a number. By the way, have you tried to "google" them to see what might come up?

    E Wart
  • TMORR: Welcome to the HRhero forum; here you will find a vast amount of experience and advice, which you can pick and choose or use all of the postings to your concerns.

    I, like the rest of our HR brethen that have responded, believe you can not use the tax ID number in place of the SSC. The key to the prevention of National Origin Discrimination is to bank on the information and documentation required for the I-9 Form. The TAX ID is not recognized in my reference material as available for the completion of the I-9. However there are other documents listed on the I-9 which will be authorized for List C completion. Acceptance of the I-9 requirements of the law for enrollment puts your company in direct violation of the I-9 proceedings of the law supporting the completion of the I-9 Form, should you accept the TAX ID, as an authorized document.

    If the most qualified applicant, then you must make an offer for employment and begin your enrollment process. If I was you I would make the I-9 my first document to complete. The individual will provide to you two documents that you can accept. The SSC is one of several that is authorized for acceptance. Should you be able to complete that document then the TAX forms are next and a TAX ID may be useful to complete that information. Paying in cash is also acceptable, but you still must extract the tax information and data and calculate the Gross and Net amounts for the employee. If your company policy is to pay by check, then I would not make an exception to the company policy. Maybe the potential applicant will simply go away.

    PORK
  • [font size="1" color="#FF0000"]LAST EDITED ON 12-07-05 AT 04:36PM (CST)[/font][br][br]She is not protected from reporting her income, period! If she does not, cannot, or will not provide a SS#, she would no longer be considered a "prospective" employee for me. I, too, know of others who work and get paid cash and their called "illegal aliens" and the companies that practice that type of behavior, if caught, face stiff penalties.

  • Yes, Welcome to the Forum.

    I agree with all the enlightened responses above.

    A SS # is required by US citizens from the time we are babies...I'm stumped as to how this individual could go without needing one all these years. Play it safe "no SS #, no job".

    Cheryl C.
  • Unless this person is very old, it seems odd that they could function without a SSN. My grandfather had one and he was born in 1892. You need one to become employed, to open a bank account, and on many official documents. In "King of the Gypsies" the hero was born in a wagon on the side of the road and had no social security number so he never could be traced. He paid no taxes but also could not obtain legitimate employment. Aside from that old movie, I have never seen a similar case. Just say no.
  • Since we automatically check all ss numbers for authenticity, no social security number, no job.
  • Uh, Cheryl? LOTS of us Babyboomers didn't get an SSA card until we were 16. Today your new baby can't leave the hospital without one, but it was a little different way back in the electronic stone age.
  • Sorry Crout...no offense intended. I'm 43 and I remember having mine since I was in early grade school.

    In the past many foreigners who came to the US on tourist visas were able to get SS #s practically upon arrival along with drivers licenses. Two of my brothers-in-law did this. Now it's not that way. You have to prove residency or citizenship at application time.

    Cheryl C.
  • My parents who born before social security existed have numbers. I know my grandparents (who immigrated here before social security existed) got numbers.

    And, I also know, that there are people in jail for not paying their taxes for "religious" reasons or for advising people how not to pay for their taxes for "religious" reasons.
  • Take it from a company that is in the middle of a very long drawn out law suit brought on by the brother of the owner, because he renounced his SSN and thinks he does not have to pay taxes. This has been going on for 7 years now, and no end in sight. But the law will prevail. Hope we are all still alive to witness it. Don't hire!!!.
  • Don't hire. Take it from a company that has been in a fight for 7 years. The owner hired his brother knowing he refused to pay taxes. Since then myself, the IRS commissioner, the State of Oregon, our lawyers, our company and the owner are intangled in a law suit for taking taxes from the employees check. Of course the suit is stupid, and so was the owner for going ahead and hiring. We will win in the end, but the stress and harassment has been at times overwhelming.
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