Payroll Glossary
What is ITIN (Individual Taxpayer Identification Number)?
By Anthony Moretti · Updated June 2026
An ITIN is an IRS-issued nine-digit number for individuals who need to file taxes but are not eligible for a Social Security number.
Why ITINs matter for employers
Employers may have employees or contractors who do not have Social Security Numbers but do have Individual Taxpayer Identification Numbers. ITINs are issued by the IRS to individuals who need to comply with US tax laws but are not eligible for an SSN - including nonresident aliens, foreign nationals, and their dependents.
An ITIN does not authorize work in the United States and does not confer immigration status. However, it does allow individuals to file tax returns, pay taxes, and receive refunds. For payroll purposes, employers must withhold federal and state income taxes and FICA from wages regardless of whether the employee has an SSN or ITIN.
ITINs always begin with the number 9 and have a 7 or 8 in the fourth digit (for example, 9XX-7X-XXXX). They expire if not used on a tax return for three consecutive years and must be renewed through the IRS before they can be used again for tax purposes.
Employers should not refuse to hire someone solely because they have an ITIN rather than an SSN - doing so may constitute illegal immigration-related employment discrimination under the INA. However, employers are required to use E-Verify or Form I-9 to verify work authorization separately from tax identification.
When an employee obtains an SSN after having an ITIN, they should notify the employer and update payroll records. The IRS will merge the tax records associated with the ITIN into the SSN account.
How BEG handles ITIN employees in payroll
BEG Managed Payroll processes payroll and withholding correctly for employees with ITINs and ensures proper W-2 reporting as part of fully managed payroll at $25-$45 per employee per month. Learn about BEG Managed Payroll.
Frequently asked questions
Can an employee with an ITIN receive a W-2?
Yes. Employers issue W-2s to all employees regardless of whether they have an SSN or ITIN. The ITIN is used in place of the SSN on the W-2.
Does having an ITIN mean an employee is authorized to work?
No. An ITIN is a tax processing number only and does not establish work authorization. Employers must still verify work eligibility through Form I-9.
Do ITINs expire?
Yes. ITINs expire if not used on a federal tax return for three consecutive years. They must be renewed through the IRS before the individual can use them for tax filing purposes.
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About the author
Anthony Moretti is VP of Sales at Business Executive Group, where he builds BEG's managed payroll and HR service verticals for employers across Dallas-Fort Worth and nationwide. He writes the BEG Payroll Glossary to give employers plain-English answers on payroll and compliance.
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