If you're running a business, you might know how tricky it can be to handle payroll, especially for workers with an ITIN instead of a Social Security Number.
You might have faced challenges in getting these workers on your payroll and providing them with a W-2.
But what if there was a simpler way to manage this?
Let's talk about a solution that involves using a separate EIN number for your ITIN workers and keeping their payroll records under a different set of books.
What are ITIN Workers?
ITIN (Individual Taxpayer Identification Number) workers are employees without Social Security Numbers. They are often skilled and hardworking but face challenges in being formally included in payroll systems.
The Problem: Adding ITIN Workers to Payroll
A lot of payroll companies don't want to deal with ITIN workers because they think it's too complicated or risky.
But here's the thing: it's not that these payroll companies can't add ITIN workers to your payroll; they just choose not to.
They're worried about making mistakes with the extra manual work needed for ITIN workers, which could lead to tax issues and fines for them.
So, they just say "no," leaving you in a tough spot, especially when you really need these workers.
Not Wanting to Change Payroll Providers
Maybe you absolutely love your payroll company and don’t want to move all your employees from one payroll company to another. It can be a hassle and cause a lot of headaches. But what if there's a way to avoid this big change?
The Solution: A Separate EIN for ITIN Workers
A smart move is to create a separate Employer Identification Number (EIN) just for your ITIN workers. This means you can have the best of both worlds - you can get your ITIN workers on your payroll with Baron and still work with the payroll company you love for all your employees with Social Security numbers.
Here's why it's a good idea:
- Simple and Legal: Using a different EIN to pay your ITIN workers is a great workaround if you are not willing to switch your payroll company entirely.
- Smooth Payroll Process: With a system just for ITIN workers, you can add your ITIN workers onto payroll and not have to pay them off-the-books or with a 1099 anymore.
- Better Money Management: Including your ITIN workers on payroll and paying them with direct deposit, even if your worker doesn’t have a bank account, eliminates the hassle of paying in cash.
How Baron Payroll Fits In
Baron Payroll is different from other payroll companies. We have a proven process to add ITIN workers to your payroll. We have been doing it successfully for over twenty years, and we can do the same for you.
We do things like:
- Creating Separate Electronic Files for Companies With ITIN Workers: We make separate files to upload to the Social Security Administration for companies with ITIN workers.
- Manual Effort Required to Accomplish This Task: We have a proven internal process to break out the ITIN files and ensure all company files are uploaded to the Social Security Administration. '
- Expert Knowledge: Our team knows a lot about HR and payroll compliance, including how to handle ITINs properly.
Making the Switch Easy
If you're worried about moving all your employees to a new payroll company just to include your ITIN workers on your payroll - the good news is, you may not have to.
By using a separate EIN for your ITIN workers, you can keep your current payroll system in place while still being able to add your ITIIN workers to your payroll and give them a W-2.
In the end, getting your ITIN workers on payroll and sorting out their W-2s doesn't have to be difficult.
With the right plan and a team like us at Baron Payroll, you can accomplish this with little or no disruption to your business.
If you’re worried about putting all of your workers on payroll, think about setting up a separate EIN for your ITIN workers and see how you can sleep better at night.
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If you found this article helpful, here are some others you might like:
- How Much Do Payroll Services Cost?
- 1099 vs W2 Employee - An Honest Cost Comparison for Business Owners
- Why are my W2 Wages Lower Than my Salary?
- How to Choose the Best Payroll Company for Your Small Business
- The Pros and Cons of Paying Employees with Payroll Paycards
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