Why You Shouldn't Add Your ITIN Workers as 1099s

Have you tried to add your workers without SSNs to your payroll, only to be told that they are better as 1099s? The truth is that adding your ITIN workers to your payroll is the better option.

Why?

Because misclassifying Individual Taxpayer Identification Number (ITIN) workers as 1099 independent contractors can lead to severe legal and financial repercussions. 

Here's a deeper look into the risks and how Baron Payroll can help you add your ITIN workers to your payroll instead. 

1. Legal Compliance and Penalties

Misclassifying ITIN workers as independent contractors can result in violations of Department of Labor (DOL) regulations, leading to legal disputes and financial penalties.

You’re always better off paying employees on payroll rather than in cash and off-the-books. It's not just about following the law; it's about protecting your business.

2. Workers' Compensation and Liability

ITIN workers classified as 1099s may not be covered by workers' compensation, exposing your business to significant financial risks in case of on-the-job injuries. 

3. Financial Stability and Cash Flow

Misclassification can lead to financial instability due to obscured cash management. Transparent financial practices are achieved by including ITIN workers on your payroll, enhancing cash flow management and overall financial health.

4. Employee Benefits and Morale

Classifying ITIN workers as employees on payroll allows them access to benefits and boosts morale, leading to a more productive and satisfied workforce.

Without benefits, they can be left unsatisfied and looking for work elsewhere. 

Baron Payroll’s ITIN Services

So, now that you know the risks, you might be wondering, "How do I add my ITIN workers to payroll?"