"We can't add ITIN workers to payroll."
If you've heard this from your payroll provider, you're not alone.
Here's what they're not telling you: When payroll companies refuse ITIN workers, they're protecting themselves, not you.
Most payroll platforms are built for automation and scale. Adding employees with Social Security numbers is straightforward—it fits their system perfectly.
ITIN workers require something different:
For many payroll companies, that extra effort feels like risk. So instead of building proper processes, they just say "no."
Payroll companies rarely explain the real reason. They won't say:
Instead, they frame it as a legal or compliance issue—even when it isn't.
That leaves you believing you're doing something wrong, when you're actually trying to do the right thing.
Here's what most employers don't realize:
If a worker should be on payroll and isn't—the liability is yours, not your payroll company's.
Paying ITIN workers off-payroll or through workarounds exposes you to:
Even if your payroll company told you they "can't" add the worker, that won't protect you when there's a complaint or investigation.
Some businesses try running two systems: one for SSN workers, another method for ITIN workers.
This feels like a temporary fix. It's actually a long-term compliance problem.
When workers aren't all treated consistently:
When regulators or attorneys review your records, gaps raise serious questions.
Compliant payroll includes all employees—whether they have Social Security numbers or ITINs—as long as they're legally eligible to work and properly classified.
That means:
The difference isn't legality. It's whether your payroll provider has built the process to support it.
When a payroll company refuses to add ITIN workers, it's not because it's impossible.
It's because they've chosen not to build the process.
And that decision quietly puts your business at risk.
At Baron Payroll, we've been processing ITIN workers as W-2 employees—correctly and compliantly—for over 20 years. We built the processes other providers avoid because doing payroll right means doing it for your entire workforce.
Want to see what compliant ITIN payroll costs?
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