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What Is a Social Safety Quantity?
The time period Social Safety quantity (SSN) refers to a numerical identifier assigned to U.S. residents and different residents to trace revenue and decide advantages.
The SSN was created in 1936 as a part of The New Deal to offer for retirement and incapacity advantages. The unique intention of the SSN was to trace earnings and supply advantages. Now, it’s used for added functions, resembling figuring out people for tax functions and monitoring credit score reviews.
People within the U.S. are requested to offer their SSN to acquire credit score, open financial institution accounts, acquire authorities advantages, make main purchases, and extra.
Key Takeaways
- A Social Safety quantity is a numerical identifier assigned to U.S. residents and different residents to trace revenue and decide advantages.
- The SSN was created in 1936 as a part of The New Deal.
- SSNs are issued by the Social Safety Administration.
- To get a Social Safety quantity, it’s essential to file Type SS-5 with the Social Safety Administration.
- SSNs are vulnerable to unlawful use by these concerned in identification theft and fraud.
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How Social Safety Numbers Work
With only a few exceptions, all U.S. residents, everlasting residents, and non permanent or working residents have a Social Safety quantity. Even non-working residents (residents and non-citizens alike) can acquire an SSN, on account of its use by companies and authorities entities.
The authorized framework for assigning a Social Safety quantity is supplied below Part 205(c)(2) of the Social Safety Act (42 U.S. Code, Chapter 7, Subsection 405). Social Safety numbers and playing cards are issued by the Social Safety Administration (SSA).
Social Safety numbers are actually random streams of digits. Nonetheless, previous to 2011, the numbers had particular functions. In these years, the primary three digits represented the world wherein the person was born or was from. The subsequent pair of numbers was initially slated to characterize a yr or month of beginning.
Attributable to concern that this may very well be falsified, the Social Safety Administration as an alternative voted to have it characterize a gaggle quantity. To this point, no Social Safety Numbers have been reused, although there have been some circumstances wherein two folks have been issued the identical quantity.
Scammers are in all places, so it is necessary that you simply preserve your info protected and safe. You may keep away from scams and report them on to authorities by way of the Federal Commerce Fee’s web site.
The Historical past of SSNs
As famous above, the Social Safety quantity was established as a part of a program developed by President Franklin D. Roosevelt to assist residents of the US following the Nice Melancholy.
Roosevelt signed the Social Safety Act in 1935 to assist present People with financial stability, particularly to folks over the age of 65. This included monetary advantages that will be primarily based on the quantity of revenue they acquired earlier than they entered retirement.
The Social Safety Board was established with the intention to keep the Social Safety Act and to maintain on prime of recordkeeping. This led to the creation in 1936 of a singular nine-digit quantity assigned to every particular person.
Elements of the Social Safety Quantity
Space quantity
The primary group of three digits is the world quantity. It represented the issuing state. States might have multiple quantity, relying on how many individuals wanted SSNs. Examples of space numbers embody 001 to 003 for New Hampshire and 575 to 576 for Hawaii.
Typically, folks on the east coast have the bottom SSNs. Space numbers ascended as task moved westward. So, folks on the west coast are inclined to have the very best SSNs.
Starting in 1972, the world quantity was assigned primarily based on the zip code related to the mailing deal with (which is not essentially the place of residence) on the appliance.
There have been exceptions to the unique space quantity task course of:
- 700-728 have been assigned to railroad employees till 1963.
- 586 was assigned to American Samoa, Guam, the Philippines, People employed internationally by American corporations, and Indochinese refugees (from 1975 to 1979).
- 729-733 have been allotted to the Division for Homeland Safety for its Enumeration of Entry program for non-citizens admitted to the U.S. for everlasting residence.
- 666 won’t ever be assigned.
Group quantity
The next group of two digits is the group quantity. Group numbers vary from 01 to 99. They weren’t essentially assigned consecutively. They initially represented the teams of 10,000 numbers issued to a state’s put up places of work which have been to assist assign SSNs. They got here to characterize the issuing workplace.
Serial quantity
The final 4 digits within the third group are the precise serial quantity. They ascended from 0001 to 9999 inside every group. The serial quantity 0000 is not used.
In 2011, SSNs started to be issued randomly.
The utilization of SSNs has modified over its lifetime as nicely. For example, in 1943, federal authorities companies have been required to make use of them with the intention to establish people. Different key moments within the SSN’s timeline embody:
- The usage of SSNs for tax reporting functions by the Inside Income Service (IRS) in 1962
- The requirement of banks to acquire SSNs from all their clients as of 1970
- The necessity to present monetary establishments along with your SSN for an interest-bearing account in 1983
- The printing of SSNs on driver’s licenses in addition to beginning and demise data in 1996; SSNs have been faraway from driver’s licenses and beginning data in 1999
- The removing of legal guidelines requiring use of SSNs as a solution to establish people in 2008
Though the issuing sample for SSNs known as for numbers to be assigned beginning with probably the most jap state, the bottom quantity—001-01-0001—was assigned in 1936 to not a Maine citizen however to a lady residing in Harmony, New Hampshire.
Why You Want a Social Safety Quantity
A Social Safety quantity is essential to have on account of its direct connection to the long run advantages it’s possible you’ll be entitled to obtain from the U.S. authorities.
An SSN is used to trace a person’s yearly earnings and the variety of years they’ve labored. These figures are required to compute potential monetary advantages, whether or not they relate to retirement revenue, incapacity revenue, or medical health insurance.
When folks begin their working careers, employers request their Social Safety numbers as a part of the appliance course of. They supply the Inside Income Service (IRS) with particulars of wage funds related to every SSN and the withholdings made for workers’ contributions to Social Safety and Medicare. Employers additionally report this info to any state that has an revenue tax.
Different Causes You Could Want an SSN
- To open a checking account or different monetary account
- To use for a federal mortgage
- To use for unemployment
- As an identifier on tax returns
- To get a driver’s license
- To acquire a passport
- When enrolling in Medicare
Get a Social Safety Quantity
A Social Safety quantity and its corresponding card could also be obtained by filling out Type SS-5: Utility for a Social Safety Card from the SSA. The shape explains how you can acquire an unique card, change a card, and alter or right SSN data.
A full record of necessities, resembling documentation that proves age, identification, and U.S. citizenship or immigration standing, is included on the shape. There isn’t any price to acquire a quantity or card. In some circumstances, a person might change their Social Safety quantity.
420 million
The variety of Social Safety numbers out there for task.
Social Safety Numbers and Identification Theft
Social Safety numbers are ceaselessly used as a private identifier and to acquire credit score. They include no biometrics and depend on documentation to show validity. They’re vulnerable to make use of for identification theft and fraud.
A notable instance of that is when the chief govt officer (CEO) of identification theft prevention service LifeLock used his SSN in ads as a testomony to his firm’s effectiveness. His identification was later stolen a number of occasions.
There was some motion amongst legislators to separate some actions from SSN use, resembling renting an condominium or acquiring a searching or fishing license.
What to Do if Your SSN Is Stolen
When you uncover that your Social Safety quantity is being utilized by another person or in case you lose your card, there are steps it is best to contemplate taking instantly.
- Contact the credit score reporting companies (Experian, TransUnion, and Equifax) to verify they’re conscious of the difficulty; have a safety or fraud alert connected to your credit score report.
- Contact the Social Safety Administration to inform it of fraudulent use of your quantity, or the potential for it. When you misplaced your card, talk about the method to switch it.
- File a police report on an precise theft of your card or use of your quantity.
- Monitor your credit score reviews for any unauthorized use of present credit score accounts or the unauthorized opening of recent accounts.
How Can I Discover Out if Somebody Is Utilizing My Social Safety Quantity?
There is no straightforward solution to verify and see whether or not your Social Safety quantity has been compromised. Many individuals do not discover out till it is too late. Nonetheless, there are just a few methods you possibly can preserve up-to-date with any uncommon exercise that could be associated to another person utilizing it. You may monitor your credit score reviews and financial institution accounts, confirm your revenue with the Social Safety Administration, and request tax transcripts with the IRS.
What Can Somebody Do With Your Social Safety Quantity?
Your SSN is likely one of the most necessary items of non-public info—if not crucial—that you’re going to ever have. That is why it is so necessary that you simply preserve it confidential. Somebody who has your SSN can use it to impersonate you, acquire credit score and open financial institution accounts, apply for jobs, steal your tax refunds, get medical therapy, and steal your authorities advantages.
What Ought to You Do if Your Social Safety Quantity Is Stolen?
Identification thieves are in all places. Contact the Social Safety Administration in case you suspect that your quantity is stolen. The company might help repair issues associated to revenue. When you’ve got issues along with your credit score, it’s essential to contact your monetary establishment and the credit score reporting companies (Equifax, Experian, and TransUnion). You may as well file complaints with IdentityTheft.gov, the Inside Income Service, and the Web Crime Middle to report any suspicious exercise.
How Do You Get a New Social Safety Quantity?
With the intention to get an SSN, it’s essential to fill out kind Type SS-5 and supply the SSA with two paperwork that show your age and identification, and citizenship or immigration standing.
How Lengthy Does It Take to Get a Social Safety Quantity?
The Social Safety Administration mails people their social safety playing cards as quickly because it receives all the required info and documentation. This could take so long as two to 4 weeks, particularly when the administration is dealing with delays.
The Backside Line
A social safety quantity, or SSN, is a singular figuring out quantity related to U.S. residents and different residents within the nation. It has been round since 1936, in regards to the time that the Social Safety Administration was established (1935) to offer us with retirement and incapacity advantages.
Right this moment, the necessity for an SSN goes past calculating what we’re entitled to obtain because of the contributions we have made all through our working lives to Social Safety and Medicare.
It is required to open monetary accounts, apply for loans, apply for unemployment help, and get a driver’s license.
Your social safety quantity is your key to necessary future advantages. So, it is essential to guard it and the cardboard that it is on. Remember to use it solely when formally required (and never merely when somebody asks you for it).