Question

ITIN and QBO

Forum|Forum|6 years ago
January 23, 2020
3 replies
0 views

I have an employee with an ITIN which isn't accepted by QBO. The social security administration accepts it, but I can't use it in QBO payroll. Apparently, based on this thread, QB Desktop accepts it too. I find this absurd. Anyway....how do I find the place within the employee's record in QBO to mark "applied for" as this thread suggests? My e-filing works with a dummy SSN entered instead of his ITIN, but I have to submit end of year forms manually to the state and SSA so that his information is processed properly.

https://quickbooks.intuit.com/learn-support/en-us/federal-taxes/set-up-nonresident-alien-nra-tax-withholding-for-foreign/00/370745

MichelleBh

Thank you for posting here in teh Community, @mbell19.

It's my pleasure to give you an insights about Individual Taxpayer Identification Number (ITIN).

Yes, you're correct, only QuickBooks Desktop Payroll accepts the ITIN number. The reason behind that is QuickBooks Online payroll doesn't support ITIN per IRS regulation. We can only carry employees with valid SSNs.

Regarding the applied for on the employee's page, even though you've entered that in QBO, you're still unable to go through the process.

As a workaround, since the Social Security Administration (SSA) accepts the ITIN number of your employee, I suggest getting a piece of information needed for the year-end forms inside QBO and process it manually.

Concerning the dummy number saved in the employee's record, leave at it is in QBO so that you can still run payroll.

To learn more about the difference between two numbers, please visit this article: SSN vs. ITIN.

For Future reference on how to print W4/W2 forms and the different tasks to complete the year end, please browse these articles:

Please leave a comment below if you have follow up questions. I'm always here to help. Take good care always!

M

mbell19Author

"Regarding the applied for on the employee's page, even though you've entered that in QBO, you're still unable to go through the process. "

No, I have been unable to enter that in QBO. I was hoping you could tell me how to do so. I only saw the instructions for desktop - I cannot find it within QBO on the employee page.

JenoP

Let me walk you through the steps, mbell19.

QBO Payroll only accepts numerical character in the Social Security Number field. This means the program will not accept the word "Applied For". Instead, temporarily enter "000-00-0000" in that field.

Let me show you how:

Open the employee's profile in the Worker's menu.
Click the Pencil icon beside Pay.
Go to Step 2 (under the Withholding section), then click the Pencil icon to edit the W4 details.
Enter the information under the Social Security Number field.
Click Done.

Let me also share our year-end guide in case you might need this: Year-end checklist for QuickBooks Online Payroll.

Please continue to add a reply below if you need more help when filing tax forms in QBO.

MaryLandT

Thanks for the screenshot, bulldog8934,

Let me clear things out for you. You can't enter zeros for the SSN, and that's why you're getting an invalid error.

As a workaround, you'll want to copy a number from one of your employees, then change the last digit. Just make sure to enter the correct one before filing W-2s to prevent incorrect information on your returns.

The SSN is provided by the IRS, not from QuickBooks. Perhaps, you can search a dummy one online and enter it on your employee's profile.

I've added a quick video tutorial for guidance about adding an employee: How to set up QuickBooks Online Payroll.

Keep in touch with me if you need additional information. Just tag my name and I'll get back to you.

M

mbell19Author

@MaryLandT

This is what is so confusing. A QB employee told us to use all zeroes! See below.

<JenoP

Let me walk you through the steps, mbell19.

QBO Payroll only accepts numerical character in the Social Security Number field. This means the program will not accept the word "Applied For". Instead, temporarily enter "[x]" in that field.>

Note: stating that I need to say "applied for" was mentioned in a previous thread, which I linked in my initial post to start this thread. Clearly, entering all zeroes doesn't work, even temporarily, as was suggested within this thread.

How do we know who can give the correct answer here???

You state that we should use another employee's SSN and change the last digit - but remember to change it to the correct number when processing W2s. Now, how is that going to work exactly, when QB won't let me off the screen until a valid SSN is entered? There's no way that I know of to change it to the correct number before processing W2s when the SSN has to be entered on the employee screen and I cannot save the employee data with what QB thinks is an invalid SSN. And, to be clear, I'm well aware that SSNs are provided by the IRS. I have a copy of my employee's valid ID card with an ITIN number from the IRS - but QB will not accept that number.

We are going in circles here.....no one knows how to solve this issue.

katherinejoyceO

Thanks for actively responding, @mbell19.

I appreciate you for voicing out your concerns to us. Let me chime in to share some insights and clarify how you can enter your employee without SSN in QBO so you can start using the payroll service.

Generally, NRA employees are subject to Federal Withholding, Social Security, and Medicare taxes on their earnings for services they performed in the U.S. Thus, everyone who works in the United States must have a Social Security number (SSN).

As per IRS in this article: Eligibility to Work in the United States, any employee without a social security card should apply for one using Form SS-5, Application for Social Security Card (PDF). The Social Security Administration (SSA) offers a social security number (SSN) verification and quick access to relevant forms and publications.

Furthermore, exceptions are made based on an employee's non-immigrant status by un-marking the taxes as needed when you set him/her up in QBO payroll.

As an employer, you'll need to determine first which taxes your employee needs to pay according to his/her visa status. Refer to this article for proper guidance: The exemption status of foreign employees with particular visa types.

Should you need further guidance on visa types and your employee tax setup, consulting your accountant or tax professional is highly recommended.

Lastly, I'd recommend getting your worker's name and SSN for employee's Form W-2 year-end filing. Use this link to verify the Social Security numbers of your employees once you'll have it.

Let me know if you have additional concerns about payroll. We're always delighted to be your guide.

F

Frustrated212

I am using the accountant's version of QuickBooks desktop. I do taxes for a living and I find it frustrating that I can no longer add employees with ITIN's for make changes to their existing pay. Federal Tax Law says that a shareholder of a corporation is required to be on the payroll. It the 100% shareholder only has an ITIN they are still required by tax law to be on the payroll. QuickBooks has no right to tell us accountants that we have to violate Federal Tax Law by not allowing them to be on the payroll. If this isn't fixed I will start looking at other payroll software that isn't trying to me I have to violate Federal Tax Law as I am also bound by the requirements of my licensing. For over 15 years at my office we have been allowed to have ITIN's on the payroll and I don't see any reason to change this.

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