If you've landed on this article, it's probably because you're wondering: can I hire someone with an ITIN number?
ITIN is complicated.
And I know your time is valuable, so here's the short answer:
It may depend on which payroll provider you use - most national companies won't include ITINs.
But thankfully, Baron Payroll does!
So, yes, you can add your ITIN workers to payroll (but Baron Payroll is one of the only companies to do it).
With that said...
You might be wondering. Why has Baron Payroll been adding ITIN workers to payroll for over twenty years, when other companies won't touch them?
And to answer that,...
You have three options:
1. You can download the PDF below and get everything you need to know about ITIN as an employer.
2. You can book an appointment to learn how to get your ITIN workers on your payroll.
3. You can continue to read through this article and find the answers for yourself.
Ready?
Let's go.
What is an ITIN Number?
Individual Taxpayer Identification Numbers were created by the Internal Revenue Service to allow people without Social Security numbers to pay taxes. However, they alone do not provide legal immigration status or work authorization in the U.S.
A foreign national may not be able to get a Social Security number in the U.S. but has an ITIN and enough other documentation to work in New York legally.
For these workers, taxes are withheld and paid from payroll the same way they are for employees with Social Security numbers.
If an employee provides you with enough documentation to work in the U.S. as per the I-9 form and presents you with an ITIN, Baron will add them to your payroll, so you're covered.
Why Does Baron Allow ITINs When Most Other Providers Don't?
Most large payroll companies will not put employees with ITINs on your books. Some may claim they do, but in practice, they don't.
The reason often comes down to inconvenience.
Payroll companies have to send documentation for programs like Social Security to the federal government once a year.
ITINs can interrupt large electronic files payroll companies send to the federal government. To get around this, payroll companies need to remove companies with ITINs, or any Social Security number that begins with a nine and send those companies' files separately.
It takes time and care, and big payroll providers don't want to deal with these administrative complexities.
That's not us. We won't avoid hard, complex work – we'll do what we need to provide you with the specialized services you need.
We won't tell you to get rid of employees with ITINs. They may be your best, most trusted workers. And we will tell you that paying employees under the table isn't the safest option for you.
Because we're not a giant company, it's easy for us to manage this process and get it right. We've been doing it since the beginning.
Is it Legal to Hire ITIN Workers?
Most payroll companies don't work well with businesses that have employees with ITINs. But because hiring ITIN workers is legal in NY, Baron has been doing it as long as we've been a company.
Why?
Because it only benefits businesses.
For example, imagine a time when workers are scarce.
As a business owner, it may be tempting to pay some employees under the table.
But if one of these employees has an injury on the job, they aren't covered by workers' compensation unless they're on your payroll.
And if the Department of Labor walks through your door, they will want to see payroll records and ensure all of your employees are paid on your payroll.
If not, you could be in legal jeopardy.
But when you put your ITIN workers on your payroll, you can sleep at night knowing there are no skeletons in the closet.
What if an Employee Gets a Social Security Number Later?
If an employee's immigration status changes, they can request to move their money from the ITIN number to the new Social Security number, so nothing is lost.
It's a win-win for the employee and you, and it protects your business.
And that’s it!
Now that you have learned that you can hire someone with an ITIN Number, hopefully, you’ll be able to make the right decision for your business.
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