CSLB Contractor's Law & Business Practice Exam

What should a newly hired employee do if they do not have a Social Security Number (SSN)?

1. Wait until they receive one in the mail

2. The employer will file for them

3. The employee must apply for an SSN

4. They are ineligible for employment

The correct answer is: They are ineligible for employment

The most appropriate course of action for a newly hired employee who does not have a Social Security Number (SSN) is to apply for one. The SSN is a critical form of identification in the United States, necessary for taxation and employment eligibility. Without an SSN, the employee cannot legally work, as employers are required to report earnings to the Internal Revenue Service (IRS) using the employee's SSN. Therefore, the employee must take the initiative to apply for an SSN to be compliant with employment laws and to access benefits that come with legal employment. Waiting for an SSN to arrive in the mail or assuming the employer will file for one is not viable, as these options do not address the legal requirement for a valid SSN needed at the time of hiring. Consequently, if an employee does not have an SSN, they are considered ineligible for employment until they obtain one. This underscores the importance of having a valid SSN to ensure compliance with federal regulations regarding employment.