Read This Before You Trust Your Payroll Company With ITIN Workers

Your payroll provider might’ve told you:

“Yes, we can add your ITIN workers to payroll.”

But here’s what they’re not telling you…

Most payroll companies say they support ITIN workers—but they’re doing it the wrong way.

Some file payroll tax returns with an incorrect ID number like 000-00-0000
Others tell you to change the ITIN number to a different leading number (other than 9)
And most tell you just to pay them as 1099 subcontractors when they should be classified as W-2 employees

This isn’t just shady—it adds financial risk to you and your business.

At Baron Payroll, We Do It the Right Way — Every Time

For over 20 years, Baron Payroll has helped business owners like you add ITIN workers to payroll the correct way.

We file the actual ITINs on every payroll tax return—941s, W-2s, most state reports—with zero shortcuts.

We've rarely had an issue with an ITIN filing, except recently for a few states.

99% of the time... No mismatches. No fake IDs. No workarounds.

Why We’re Giving You This Article

We wrote this to protect business owners like you who are being misled by other payroll companies.

If you’ve been told “we can add your ITIN workers,” this article will show you:

What to look out for
How to verify what’s really happening
How to make sure your business stays compliant

Before you move forward, take five minutes to read this. It might save you thousands of dollars—and protect someone else’s livelihood, too.

What’s Really Happening When Payroll Companies Say:

“We Can Add ITIN Workers to Your Payroll”

If you’re a business owner who employs workers with ITINs (Individual Taxpayer Identification Numbers), you’ve probably heard this line before:

“Yes, we can add ITIN workers to payroll.”

Sounds good, right?

But here’s the problem: many payroll companies are saying it—but doing it wrong.

And that can put your employees and your business at serious risk.

The Hidden Problem: What Most Payroll Providers Won’t Tell You

Some payroll companies try to “trick” the system.

Here’s what we’ve seen:

Adding ITIN workers to payroll using all 0s or someone else's Social Security number in place of the ITIN number
Changing the Social Security Number on tax returns to something other than the real ITIN
Submitting 941s and W-2s with fake Social Security Numbers
Keeping employers in the dark—because you only see the last 4 digits on reports

And that last point is the kicker: most employers have no idea it’s happening.

Until it’s too late.

A Real Story: How One Man Almost Lost His Federal Housing — And Didn’t Even Work There

This is what can happen when a payroll company submits tax filings under the wrong Social Security Number:

In one case we saw, a payroll provider incorrectly filed wages earned by an ITIN worker under someone else’s Social Security number—an individual who had absolutely no connection to the business.

The result?

That innocent person suddenly appeared to be earning far more income than they actually were. And because of that, they almost lost access to their federally subsidized housing.

That person had no idea their Social Security number was used. They weren’t involved in the business at all—and yet their life was turned upside down.

This is what happens when payroll companies change or invent Social Security numbers. It not only robs the ITIN worker of credit for their earnings—it can devastate innocent people who get caught in the crossfire.

Why This Puts You at Risk

You might think:

“I see the last 4 digits of the ITIN on payroll reports—it looks fine.”

But that’s exactly the problem.
You don’t see the full number that was submitted to the IRS and your state.

If your payroll company changes the ITIN number or invents Social Security numbers:

Your employee’s wages may not be recorded correctly with the IRS
They may not qualify for loans, tax refunds, or benefits later in life
You could be held liable for filing false payroll returns—even if it was unintentional
And now, you might unknowingly be affecting innocent third parties

The IRS and Department of Labor won’t blame your provider.

They’ll come after you.

How to Protect Your Business and Your Workers

If you’re currently paying—or planning to pay—workers with ITINs, ask your payroll company:

1. Are the full ITINs being used on all payroll filings, including 941s and state returns?
If they hesitate or say “we use a generic number,” that’s a red flag.

2. Do the W-2s and 941s have your workers' exact ITIN number?
They must. If not, it’s a huge compliance risk.

The Bottom Line

Baron Payroll has been helping businesses correctly add ITIN workers to payroll for more than 20 years. We know how to do it the right way—with full compliance, accurate filings, and no shortcuts.

You’ll never have to worry whether your filings are right. You’ll know they are.

Want to see how much it would cost to do ITIN payroll the right way?

👉 Use our instant price calculator — no sales call required.

Or visit https://www.baronpayroll.com/itin-service to learn more.

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