Understanding the Difference Between an SSN and an ITIN

When managing your taxes or accessing government services in the United States, it’s essential to understand the difference between a Social Security Number (SSN) and an Individual Taxpayer Identification Number (ITIN). For businesses using 7shifts Payroll, knowing which type of identification applies to your employees is crucial for accurate payroll processing and tax reporting as 7shifts supports payments to both W-2 Employees and 1099 Contractors. Here’s a clear breakdown to help you determine which one applies to your situation.

What is a Social Security Number (SSN)? 

A Social Security Number (SSN) is a nine-digit number issued by the Social Security Administration (SSA). 

Who Is Eligible? 

• U.S. citizens. 
• Permanent residents. 
• Non-citizens authorized to work in the U.S. 

Purpose:

• Track earnings and determine eligibility for Social Security benefits, such as retirement or disability payments.
• File federal tax returns.
• Serve as a primary identifier for financial transactions.

Format: 

• XXX-XX-XXXX

What is a Individual Taxpayer Identification Number (ITIN)?

An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issues by the Internal Revenue Service (IRS). 

Who Is Eligible? 

• Individuals who are not eligible for an SSN. 
• Individuals who need to report federal taxes.
• Examples include: 
  • Non-citizens or non-residents who have U.S. income.
  • Dependents or spouses of U.S. residents. 
  • International students who meet tax filing requirements. 

Purpose: 

• Facilitate tax reporting and compliance. 
• Note: An ITIN does not authorize work or qualify an individual for Social Security benefits. 

Format: 

• Similar to an SSN, starting with a "9".
• 9XX-XX-XXXX

More Information
For more information or assistance, visit the Social Security Administration or the Internal Revenue Service websites.