Does it Require a Person to Have an SSN for a Job to Appear on a Person's Record?

Often, questions arise about the necessity of a Social Security Number (SSN) for employment records. While it may seem a given, the answer isn't as straightforward as it might appear. To understand this, let's dive into the intricacies of employment records and the role of the SSN.

Understanding Employment Records

First and foremost, it's important to clarify that a person does not have a single, unified 'record.' Numerous companies maintain detailed records on individuals, ranging from employers to financial institutions, credit bureaus, and background check services. These records are independently managed and not under a singular umbrella. For instance, data brokers collect and sell such data to various third parties, such as finance companies, credit bureaus, background check services, private investigators, and legal representatives. The inconsistencies among these databases can make it challenging to have a comprehensive view of any individual's data.

SSN and Employment Reporting

With regard to employment records, the process can vary. It is possible for an employer to report the fact that they hired someone using only the person's name and date of birth to a service called 'The Work Number,' which is run by Equifax. However, it's crucial to note that a Social Security Number (SSN) is preferred but not always required. Only member companies and subscribers to Equifax services can contribute to or retrieve records from The Work Number.

The Role of the Social Security Administration (SSA)

The Social Security Administration (SSA), which does require an SSN for recording an individual's employment and tax payments, holds a comprehensive database of all workers. However, the access to these records is extremely limited, granted only to the SSA itself, the Internal Revenue Service (IRS), and possibly the Federal Bureau of Investigation (FBI)/Department of Justice (DOJ).

The Impact of Missing an SSN

Even if a person does not have an SSN at the time of employment, it's essential to note that the absence of this number can cause issues. Payroll systems will flag accounts that do not have a registered SSN, given the mandatory requirement to obtain one for employment. These accounts may be given special attention by various government agencies until a valid SSN is provided, which could delay the start of employment and cause other complications.

Conclusion

In conclusion, the requirement of an SSN for employment records isn't as clear-cut as one might assume. The SSA maintains the most comprehensive records of employment and tax payments, yet the access to these records is strictly controlled. While The Work Number and other databases can contribute to employment records without an SSN, it is wise to ensure that every individual possesses an SSN and updates their information promptly to avoid any complications in the future.