Current News |
Ohio AG tells
employers to stop using
SSN's
From:
Billy-Joe: Mauldin
http://www.ag.state.oh.us/legal/pubs/empLaw/spring04web300.pdf
Ohio AG tells employers
to stop using SSN's-
March 2008 Human
Resources
Newsletter---Copyright
by CT Forms
"The Premier Service for
Forms of Counsel." All
Rights Reserved.
OHIO ATTORNEY GENERAL
RECOMMENDS EMPLOYERS
DISCONTINUE USAGE OF
SSN'S AS IDENTIFICATION
!!
HUMAN RESOURCES TIP #23:
Discontinue usage of
SSN's as employee
identification use
alternative numbers.
HUMAN RESOURCES TIP #24:
Redact or black-out
SSN's on all documents
in files.
HUMAN RESOURCES TIP #25:
Respect your employee's
wishes when they refuse
to provide an SSN on ANY
document even those of
government. Take no
adverse action against
an employee for refusing
to provide an SSN.
HUMAN RESOURCES TIP #26:
Do not assume an SSN is
a TIN [taxpayer
identification number]
unless specifically
told-so by the employee
Dear Human Resources
Manager or Subscriber:
For this March
newsletter we re-visit
identity theft, Social
Security
Numbers [SSN's] and a
methodology for keeping
your company safe
regarding these
"identity theft"
numbers.
For years we have been
stating that the
continued usage and
demand
of SSN"s from employees
will cause some
potential na ve employer
a huge litigation
problem. It's a ticking
time bomb. Unfortunately
employers are slow to
catch on but you won't
be able to say that the
Ohio Attorney General
didn't warn you in 2004.
In the attached piece
written by the Ohio
Attorney General and
according to the Federal
Trade Commission -- the
number one source for
identity information
is employer records.
Often these employer
records contain the
name,
SSN and address of the
employee thus making
them convenient "one
stop shopping" for
identity thieves. With a
litigious society bent
on civil lawsuits, it
isn't a stretch of the
imagination to imagine
a lawsuit over an
employer not adequately
taking steps to prevent
this information from
disclosure. Since 2004
the problem has only
gotten far worse. Record
numbers of law
enforcement agencies are
being inundated with ID
theft complaints
primarily traceable to
SSN's many from
employer-related records
[or third-party releases
such as background check
private companies.] Our
bottom line
recommendation is this:
"Stop using these
numbers. If the number
ISN'T on the form, it
can't be stolen. If the
number isn't in the
file, it CAN'T be
stolen!"
THE SECRET YOU NEED TO
KNOW: We checked with
our counsel who
provided us this opinion
on SSN's: "Rare is the
case an employer
actually needs a SSN.
Indeed the Social
Security Administration
admits the numbers are
actually their property
and further that
noone needs an SSN to
work in the United
States. This latter fact
isn't widely known--but
NOT knowing and
demanding an SSN where
no
authority to demand
exists--could get the
employee demanding same,
and his employer,
involved in a civil
action. Our
recommendation is
frankly to not push the
SSN issue with
employees. If an
employee
provides an SSN even on
taxation forms it should
only be done
voluntarily and with NO
adverse actions taken in
case he refuses.
Next time you visit Taco
Bell, examine closely
their application
for employment regarding
SSN's and see the result
of a law suit
over employers demanding
SSN's".
On a related note we
often get asked this:
QUESTION:
"Well if what you say is
true, then what about
SSN's on government
forms?"
ANSWER:
Form I-9: To our
knowledge the only spot
that asks for an actual
SSN [and not an implied
TIN] is on form I-9.
However nothing in the
law actually states the
employee must provide
the number. Because
primarily government
forms are intended for
government employees,
the majority of "spots
for information" are
considered voluntary
when
used by the general
population NOT engaged
in federal employment. A
twist: Indeed, the
restrictions of public
law regarding I-9
disclosures can actually
RESTRICT the employer
from using that
number on ANY other
form. In other words, do
not assume you have
the employee's
permission to use that
number on any other form
or
in any other way simply
be virtue of its
disclosure on Form I-9.
You
could possibly be in
violation of the laws
behind Form I-9!
Form W-4, Form W-2,
and Form W-3: Let's
examine W-4 first. The
title of the form
identifies it as an
"allowance" certificate
Its
only purpose is as a
permission-slip to ALLOW
the non-governmental
employer to withhold [aka
take] some money from
the employee's
compensation on behalf
of government. If you
gather that ALLOWANCE
implies a voluntary-act,
you are correct! If the
form is voluntary
for those outside
governmental employment,
then what of its content
including the spot for a
number? We repeat: The
submission of a
W-4 form or any other
alternative AND ITS
CONTENTS is considered a
voluntary act! Common
sense will dictate that
one cannot demand
on behalf of government:
(1) a form signed under
oath, with
(2) a severe penalty of
perjury jurat for non
truth when (3)
someone is simply
exchanging labor for
compensation and when
(4)
the person demanding is
not an authorized
withholding agent of
government [Hint: Were
you given a badge or
written delegation of
authority?] Next you
must understand that a
SSN is not the same as a
TIN [taxpayer
identification number].
There is no
impossibility at
law: If these two groups
of 9 digits were the
same, there would be
no need for two
different names.
[BEWARE: The IRS has
consistently
confused these two
definitions especially
in their publications
and
forms. Unfortunately--
as employers on our
distribution list have
identified--the IRS does
not come to the aid of
employers relying on
IRS publications; the
IRS is under the
Executive Branch of
government
and that branch does NOT
make law.] Thus, non
governmental employers
make a BIG mistake if
they automatically
convert or assume one
number
for the other without
the expressed permission
of the employee. Tis'
better to err on safety
and to simply refuse to
"do the work of
government": In a
government-declared
"system of voluntary
compliance
by the making of a
return", the
nongovernmental employer
is without
authority to create a
"taxpayer" that
responsibility is left
to
another. Our
recommendation is that
you as employer NOT
attempt to
"create" "taxpayers"
from mere
nongovernmental
employees.
REMEMBER:
NON-GOVERNMENTAL
EMPLOYERS CAN ONLY
REQUEST AND NOT DEMAND!
Remember that the SSN is
not "owned" by the
employee and further
your "need" is only to
satisfy his benefit if
he chooses
to participate in
government social
security insurance and
the
government withholding
program. Thus if an
employee refuses
to include an SSN on any
government form, that
right is his
own. These forms are
creations of government
and their existence
and content cannot be
made mandatory outside
those in government
employment. Further, you
need not inquire of his
reasons. His
reasons might range from
religious "mark" aspects
to simply never
applying for an SSN or
to not wanting to be
forced to make an
oath under penalty. And
you as an employer have
NOTHING to fear
from not including an
SSN on any government
form you submit to
government. The fine for
EACH employee is $15 and
this can be waived
by simply including this
statement on the
"transmittal document"
you
send with Form W-2 and
W-3: "I requested an SSN
[or Form W4]. This
non-federal employee did
not provide the number
[or Form W4]. To my
knowledge he is not a
federal employee or
government "individual"
nor does he engage in
federal [i.e. 26USC]
"trade or business".
Have a happy spring with
happy employees!
http://www.ag.state.oh.us/legal/pubs/empLaw/spring04web300.pdf
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in all matters
=============================================
No law compels a work
eligible man or woman to
submit a form W-4 or
W-9(or their equivalent)
nor disclose an SSN as a
condition of being hired
or keeping one's job.
With the exception of an
order from a court of
competent jurisdiction
issued by a duly
qualified judge, no
amounts can be lawfully
taken from one's pay
(for taxes, fees or
other charges) without
the worker's explicit,
knowing, voluntary,
written consent.
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