Why Employers need Tax I’d Numbers
The reasons that an employer must have your tax ID number or Social Security number are for their record keeping and for tax purposes, both yours and the employers. They also require a tax ID or SSN for each employee for regulatory purposes. The department of labor wants to ensure that everyone working in the United States is either a citizen or a documented worker rather than an unregistered illegal alien. The reason for this is to make it less attractive to illegals to come here, because if it is difficult or impossible for them to secure employment without the proper documentation, they have little or no reason to take the risks that one takes to illegally immigrate into the United States. This practice makes it more difficult for foreigners to come to the United States undocumented, and without the documentation or naturalization process, to take jobs that Americans who pay taxes and who put down roots into the community, could fill. Everyone has heard the age old complaint that people from Mexico and South America come into the United States illegally, take jobs that should go to American taxpayers, Many undocumented workers are willing to work for a much lower wage than American citizens who are eligible to work in the US are willing to take, and below the federally mandated minimum wage statutes. This not only fills jobs that Americans could be doing, and eliminates paying of taxes which we pay to the benefit of all of the people in the city, county, state, and federal levels. Education and lunch programs for students are paid for out of the taxpayers pockets. Welfare, food stamps, and WIC (Women Infants and Children) food subsidy programs to which all people. legal residents or not are eligible, spend billions of tax dollars collected from the working citizens, naturalized aliens, and documented workers from other countries, every year for these benefits and programs.
Your tax ID number is the number of an account that is held for you in trust by the United States government, and one which you and your employer(s) deposit money into from every paycheck that you earn to provide money for your retirement, social security disability benefis, unemployment benefits, and even death subsidy for those who need assistance with the expenses of burying someone after they die. Your tax ID or SSN is also a reference number for the correllation of a great deal of data pertaining to your work history and to the history of public benefits which you have received. Social security numbers for your dependants are also required to keep people from claiming additional dependants who do not exist. An employer also needs a social security number for each emplyee because there are cetain bonus' and tax breaks that they receive for employing people who fall into certain demographics, such as serving in the military reserve, employing rehabilitated people who are on parole and have been incarcerated for a felony. Employers also need a social security number because if someone who is working for them owes back child support the county and state authorities are able to find out that they are working, where, and by how much is being taken from each check for taxes and Social Security, exactly how much money they are making.
Your social security and tax ID numbers are also neccessary for the process of filing taxes for the business which employs you. Any monies that they cannot account for having spent on business related expenditures, in this case wages paid to an employee, they must pay taxes on as a capital gain or as revenue for the business. By securing the social security number of each emplyee they also do their part for the IRS in providing documentation of a person's wages which the company paid them throughout the period that they work for them. This amount needs to be documented for the purpose of providing both teh employee and the IRS with accurate summaries of the monies that were paid to any individual employee of the company. They have to get this number from employees in order to prove that they are following the processes and proceedures as required by law to ensure a minimum wage, to ensure that all employees are documented, naturalized, or native tax paying citizens. The final reason why employers need tax ID numbers is that it is required by law. Without proper documentation required for every single employeeit would be difficult to prevent numerous businesses where unskilled or undocumented labor is acceptable to the management of the company for the savings of a few dollars in wages and a few tax dollars. There are regulatory agencies that require the social security numbers of all employees to ensure that labor, and wage, laws, not to mention health, safety, and working condition standards are being followed in accordance with the law.
