Why do companies need your Social Security number?
Asked by: Alberto Jacobs | Last update: August 14, 2025Score: 5/5 (66 votes)
Is it normal for a company to ask for Social Security number?
Once an individual is hired, employers will need the employee's Social Security Number for payroll and benefit purposes. Safeguards should be in place to keep SSNs confidential, and employers should implement procedures for the safe disposal of this information.
Is it safe to give companies your Social Security number?
An organization's collection and use of SSNs can increase the risk of identity theft and fraud. Each time an individual divulges his or her SSN, the potential for a thief to illegitimately gain access to bank accounts, credit cards, driving records, tax and employment histories and other private information increases.
Can I refuse to give my Social Security number?
Anyone can refuse to disclose his or her number, but the requester can refuse its services if you do not give it.
What do employers do with your Social Security number?
It follows you from birth to death and serves as a key identifier to your sensitive information. And if you're a company that needs to hire, then you need a candidate's Social Security number to help run background checks.
Your Social Security Card is Insecure
Is it okay to send SSN to employer?
It's safe to provide your SSN in situations like filing taxes, applying for government benefits, starting a new job, or applying for credit from a trusted lender. Always verify the legitimacy of the request. Do this by asking whether there is an alternate ID verification system that can be used.
Is it safe to give Wise my Social Security number?
It's a completely secure, one-time only verification process that we have to do as part of how we're regulated in the US. We don't run a credit check or share your number.
Why do companies need a Social Security number?
Employers often request Social Security numbers for background or credit checks, but they are advised to do so only when absolutely necessary, and some states require additional privacy safeguards.
Is it normal to have to give your Social Security number?
You'll need to share it if you have an investment adviser or are engaging in a cash transaction of $10,000 or more -- like buying a car or house. Government agencies that provide benefits can also request your number, including the US Department of Labor and state agencies that administer Medicaid.
Can I sue my employer for giving out my Social Security number?
Bringing a Lawsuit Against the Employer
As such, California employees who suffer privacy violations are entitled to file a civil lawsuit in an attempt to gain the following forms of compensation: Lost wages or back pay, in the event they quit or are fired from their job.
Is it safe to give out your Social Security number on a job application?
The FTC (Federal Trade Commission) explicitly says NOT to put your social security number ssn or banking information on an application or resume. I would probably follow this advice. Identify theft is a big problem and you want to share sensitive information with others only when absolutely necessary.
Can you refuse Social Security?
If you apply for benefits and we have not yet determined that you are entitled, you may voluntarily suspend benefits for any month you have not received a payment. If you are already entitled to benefits, you may voluntarily suspend retirement benefit payments up to age 70.
Why do places ask for your SSN?
Many businesses will ask for your Social Security number simply because it's a convenient way for them to identify customers. Unfortunately, criminals can use your Social Security number to commit identity theft, so you should guard your SSN carefully and only give it out when absolutely necessary.
Do companies verify SSN?
Social Security Number Verifications
Employers, organizations or third-party submitters can verify Social Security numbers for wage reporting purposes only.
What questions should you ask before giving out your Social Security number?
Don't give your number out just because someone asks. Before giving it out, ask why they need it and how they will protect it. If you believe your number has been compromised, contact Social Security for guidance.
What happens if someone gets your SSN?
Scammers use your Social Security number (SSN) to get other personal information about you. They can use your SSN and your good credit to apply for more credit in your name. Then, when they use the credit cards and don't pay the bills, it damages your credit.
Do I have to give my employer my Social Security number?
Employee's Social Security Number (SSN)
You are required to get each employee's name and Social Security number (SSN) and to enter them on Form W-2 (this requirement also applies to resident and nonresident alien employees).
Why do employers ask for your Social Security number?
Why do employers need my social security number? If an employer decides to extend you an offer, they will eventually need your social security number to verify your identity and work authorization and perhaps to complete a background check.
When companies ask for your Social Security number, try saying no.?
Yes, you can refuse unless you're legally required to provide your Social Security number (SSN). However, there's also no law preventing businesses from asking for it or refusing you service if you don't provide it.
Should I text my employer my SSN?
It might sound tempting, but here's the catch: they ask you to text them your Social Security number. Don't share it. It's a scam. Scammers are sending texts on WhatsApp, pretending to offer remote jobs for positions like online data specialists.
Is it normal to give out your Social Security number?
Not only should you never carry your Social Security card in your wallet or purse, but you should rarely give out your Social Security number. The more places that have your Social Security number, the more at risk it is of falling into the wrong hands.
Does a company need your SSN to pay you?
Yes, employers need employee SSNs to run payroll and report wages to the IRS. If your employee(s) are not US residents, you can also accept Individual Taxpayer Identification Numbers (ITINs).
Who should you not give your Social Security number to?
Most of the time, it's OK to say no to schools, doctor's offices, sports clubs and many other organizations that may ask for this nine-digit identifier. In fact, safeguarding SSNs is a key first step to protecting against identity theft and other fraud.
What is the safest way to share SSN?
Don't Send Your SSN by Email or Text Message
Because a hacker might intercept the number and use it to commit fraud. Safe alternatives to sending an SSN include: Password-protected and encrypted file-sharing services.
How much does it cost to lock your Social Security number?
There is NO COST to place or lift a security freeze. For more information, see detailed instructions entitled “Placing a Security Freeze on Your Credit Report to Protect Yourself from Identity Theft” below. 5. Review your credit reports carefully.