If an employee in US does not have SSN yet, is it required to enter a dummy SSN to process their payroll or the SSN field can be left blank? Is it a mandatory field in all Payroll systems?
If a dummy SSN is required, will it need to be unique for each such employees who do not have an SSN or one standard dummy SSN can be used as a placeholder to process the pay till employee gets their actual SSN?
The risk with giving unique dummy SSN to each employee is that it might actually belong to someone in US and cause duplication and if the other person is also an US employee who joins after the employee with dummy SSN is hired then the employee with the actual SSN will get impacted as we will not be able to enter their SSN till the other employee gets their real SSN. It can also happen that the SSN belongs to our vendor or client and system will raise alert regarding duplicate SSN found.
So is there any alternative to use of dummy SSNs so that the employees pay is not impacted till they get their SSN. Is it a US regulatory requirement to have SSN to process pay or is it required only for the employer to pay the taxes and can payroll hold off till tax filing to get the employees to update their SSN?
From India, Bengaluru
If a dummy SSN is required, will it need to be unique for each such employees who do not have an SSN or one standard dummy SSN can be used as a placeholder to process the pay till employee gets their actual SSN?
The risk with giving unique dummy SSN to each employee is that it might actually belong to someone in US and cause duplication and if the other person is also an US employee who joins after the employee with dummy SSN is hired then the employee with the actual SSN will get impacted as we will not be able to enter their SSN till the other employee gets their real SSN. It can also happen that the SSN belongs to our vendor or client and system will raise alert regarding duplicate SSN found.
So is there any alternative to use of dummy SSNs so that the employees pay is not impacted till they get their SSN. Is it a US regulatory requirement to have SSN to process pay or is it required only for the employer to pay the taxes and can payroll hold off till tax filing to get the employees to update their SSN?
From India, Bengaluru
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Payroll.xls
Payroll.doc
Folklore Payroll.pdf