Table of Contents
- What is an “invalid SSN”?
- Why are 900-series SSNs not valid?
- Can I run payroll for an employee with an invalid SSN?
- What should I do if an employee provides a 900-series SSN?
- What if the employee does not have an SSN yet?
- Can I use an ITIN (Individual Taxpayer Identification Number) instead?
- What happens if the invalid SSN isn’t corrected by year-end?
- Will using incorrect SSNs cause IRS or SSA audits?
- Can I refuse to pay someone if they do not provide a valid SSN?
- Who should employees contact if they need to apply for or correct an SSN?
- Who can help me correct SSN issues in my payroll system?
What is an “invalid SSN”?
An invalid SSN is any number that the Social Security Administration (SSA) cannot issue.
This includes:
- SSNs starting with 900–999
- SSNs with 000 in any digit group
- Mistyped or incomplete SSNs
- Temporary placeholder numbers used by a prior provider
The SSA will reject these SSNs and cannot be used for W-2 reporting.
Why are 900-series SSNs not valid?
Numbers beginning with 900–999 are never assigned as real Social Security Numbers.
They are often used as:
- Prior system placeholders
- Numbers entered when the employee did not have documentation at hire
- Mistakes, typos, or duplicated numbers
Employers must request a valid, SSA-issued SSN from any worker using a 900-series number.
Can I run payroll for an employee with an invalid SSN?
Yes—short term. However, you must obtain a valid SSN before:
- Year-end W-2 filings
- Any corrections to federal or state wage reporting
- Submitting accurate payroll records to government agencies
If the SSN is not corrected, the employer may receive SSA “No-Match” notices and W-2 filing errors.
What should I do if an employee provides a 900-series SSN?
You should:
- Ask the employee to review their documents and provide their correct SSN.
- Update the employees’ I-9 if needed.
- Enter the correct SSN in the payroll system once verified.
Employers should not ask employees to physically show their SS card unless required under I-9 verification rules.
What if the employee does not have an SSN yet?
If the employee is eligible for employment but does not yet have an SSN:
- They must apply for one with the SSA
- You may continue paying them in the meantime
- Once issued, you must update payroll and year-end records
Employees cannot be issued a W-2 without a valid SSN.
Can I use an ITIN (Individual Taxpayer Identification Number) instead?
No. ITINs (starting with 9, but not the same as 900-series placeholders) are used for tax returns, not employment.
Employees must have:
- A valid SSN for W-2 reporting, OR
- Proper work authorization under federal I-9 rules
Workers with only an ITIN cannot be treated as employees for payroll purposes.
What happens if the invalid SSN isn’t corrected by year-end?
The SSA will reject the W-2 file, and the employer may face:
- W-2 corrections and reprocessing
- Possible penalties for incorrect wage reporting
- Delays in employees receiving proper wage statements
Correcting SSNs before December prevents year-end issues.
Will using incorrect SSNs cause IRS or SSA audits?
Not automatically, but:
- SSA will issue no-match errors
- IRS may question wage reporting if mismatches persist
- Repeated invalid SSNs can trigger compliance reviews
Correcting SSNs promptly minimizes risk.
Can I refuse to pay someone if they do not provide a valid SSN?
No. If the employee has completed the I-9 and is authorized to work, the employer must pay them for time worked.
However:
- They must obtain a valid SSN
- You must update payroll records once available
Who should employees contact if they need to apply for or correct an SSN?
Employees should contact their local Social Security Administration office or visit https://www.ssa.gov/ssnumber
Employers may not apply on behalf of the employee.
Who can help me correct SSN issues in my payroll system?
Our team is happy to:
- Review any employees with invalid SSNs
- Walk you through updating employee records
- Prepare your data correctly for W-2 filing
Just reach out anytime.