As you probably know by now, your social security card plays an awfully important role in various aspects of your life. More often than not, you will find yourself needing to present your social security card to avail of certain benefits and services provided by the state. This begs the question then: what are the uses of your social security number?
This article will delve into this topic and present readers with a succinct breakdown of the many uses of this document.
What is a social security number?
In a nutshell, your social security number (otherwise known as SSN) is the nine-digit number combination found on your social security card. Provided the U.S. government to its citizens as well as eligible residents if they should choose to apply for one. At first glance, it may seem just another dull set of numbers. However, its importance simply cannot be denied.
The Importance of your Social Security Number to your Work
As anyone who has gotten hired for a new job will tell you, employers will inevitably ask for your Social Security number before things get rolling. This is because your employer will need to pay taxes, and that information is vital to doing precisely that. Put simply, your employer’s accounting department takes your social security number and use it to file reports to the Internal Revenue Service (IRS).
This is done primarily for two reasons. First, they have to show that they are paying you the right wages and that they are following the state’s laws. Second, putting in an accurate report lets the IRS keep track of your remittances to the Social Security Administration. This information will help them determine the amount you are eligible to get as your pension upon retirement. That being said, it is worth noting that it would be virtually impossible for employees to legally take on work without processing their Social Security number.
Other Scenarios Needing your Social Security Number
If the prospect of not being able to work legally is not enough for you, then you should also know that a working social security number is a requirement for the following:
- Credit Card Applications – It has become the industry standard for reputable financial institutions to make use of your social security number to perform background checks to see if you can avail of their credit cards. This is because your SSN gives them access to your credit score as well as your other financial data including any investment incomes and losses.
- Federal Loans – Same as private financial institutions, the federal state also performs a thorough check on any potential loaners.
- Public Assistance Programs – The information reflected in your social security card also comes in handy when applying for different types of public assistance programs. This is a broad category that may include everything from welfare, to unemployment benefits and even social security disability income.
The importance of your social security number is wholly undeniable. That is why we must remind you to always take care of it and keep it stored in a safe place.