Efiling W2s for employees with ITINs?

bookkeeper32 · ‎January 24, 2019

I have several businesses that employ workers with ITIN numbers, for these individuals on payroll, efiling W2s to either the state or the government is a problem. As QB always says that their SSN is invalid, because it starts with a 9. Now I've spoken with an SSA agent that verified all W2s need to be submitted with the Tax ID number presented during the hiring process. Why do you force the employers to remove or change all the ITIN numbers? Why can't we submit with the paperwork as is? When SSA says thats how they prefer it?

Anonymous · ‎January 24, 2019

ITIN numbers are not acceptable for employment. They do not give the holder the right to work. Persons with an ITIN should not be hired.

See: https://www.irs.gov/individuals/individual-taxpayer-identification-number

"What is an ITIN used for?

"IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security numbers. They are issued regardless of immigration status, because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code. ITINs do not serve any purpose other than federal tax reporting.

"An ITIN does not:

Authorize work in the U.S.
Provide eligibility for Social Security benefits
Qualify a dependent for Earned Income Tax Credit Purposes"

hollybabie1 · ‎January 25, 2023

How do you change the filing from a SS number to a ITIN for the state?

the federal accepts it as Applied for, however the state e

rejects it. they have accepted it for months on the other scheduled forms, however now at the end of the year filing W-2's it will not transmit. what can I do

Tori B · ‎January 25, 2023

Thanks for sharing your concerns, @hollybabie1.

In QuickBooks, when you hire a new team member, they should complete an I-9 form and provide the appropriate documentation listed on the form to verify they can work in the U.S. legally. You can not use an ITIN in place of an SSN for employee identification or for work. An ITIN is only available to resident and non-US citizens who aren't eligible for U.S. employment and need identification for other tax purposes. An ITIN starts with a "9" and is formatted like a Social Security number (NNN-NN-NNN).

Please know that our payroll services do not accept ITINs when adding employees.

For additional information about ITINs in QuickBooks, check out the links I've included below.

You'll need to contact your state agency to verify the steps to take for your employee to file state taxes.

Please don't hesitate to let me know if you have any questions or concerns. Take care!

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Efiling W2s for employees with ITINs?