The Social Security Administration (SSA) is changing the way Social Security Numbers (SSNs) are issued. This change is referred to as “randomization.” The SSA is developing this new method to help protect the integrity of the SSN. SSN Randomization will also extend the longevity of the nine-digit SSN nationwide.

The SSA began assigning the nine-digit SSN in 1936 for the purpose of tracking workers’ earnings over the course of their lifetimes to pay benefits. Since its inception, the SSN has always been comprised of the three-digit area number, followed by the two-digit group number, and ending with the four-digit serial number. Since 1972, the SSA has issued Social Security cards centrally and the area number reflects the state, as determined by the ZIP code in the mailing address of the application.

There are currently 435 million numbers available for assignment. However, the current SSN assignment process limits the number of SSNs that are available for issuance to individuals by each state. Changing the assignment methodology will extend the longevity of the nine digit SSN in all states. On July 3, 2007, the SSA published its intent to randomize the nine-digit SSN in the Federal Register Notice, Protecting the Integrity of Social Security Numbers [Docket No. SSA 2007-0046].

SSN randomization will affect the SSN assignment process in the following ways:

• It will eliminate the geographical significance of the first three digits of the SSN, currently referred to as the area number, by no longer allocating the area numbers for assignment to individuals in specific states.
• It will eliminate the significance of the highest group number and, as a result, the High Group List will be frozen in time and can be used for validation of SSNs issued prior to the randomization implementation date.
• Previously unassigned area numbers will be introduced for assignment excluding area numbers 000, 666 and 900-999.

These changes to the SSN may require systems and/or business process updates to accommodate SSN randomization.

If you have any questions regarding SSN randomization or its possible effects to your organization, please see the related Frequently Asked Questions or email your question(s) to ssn.randomization@ssa.gov.

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Since we are now in the digital age, and communication is no longer face to face or over the phone, here are some things to keep in mind while e-mailing.

 Your e-mail can bite you! Unfortunately, just one small error in judgment can cost you.

To stay out of trouble:

1. Know what investigators look for – So called Hot words like “insider trading”, “illegal” and subtle language like “you know, that thing we talked about”. And shifts in e-mail habits (employee who normally e-mails during business hours starts e-mailing either late at night or early in the morning)
2. Check subject lines
3. Don’t edit old e-mails and send, take the time and write a new one.
4. Don’t gossip – keep personal e-mails personal; don’t send them out while at work.

Remember: Even though your e-mail may be to one person, it may be read by many people and therefore open to general scrutiny. It takes only a few moments of double checking to protect yourself.  Always proofread before sending.[1]

Take advantage of this limited time opportunity for your business to save money.

HIRE Act 2010

Under the Hiring Incentives to Restore Employment (HIRE) Act enacted March 18, 2010, two new tax benefits are available to employers hiring certain workers between February 4, 2010 and January 1, 2011.

1.      If your business hires a qualifying previously unemployed or part-time individual, you may be eligible for a tax exemption.

The basic employee qualifications for the tax exemption are as follows:

• Begins working between February 4, 2010 & December 31, 2010.
• Worked less than 40 total hours in the previous 60 day time period and signs a statement (IRS form W-11) certifying that this is true.
• Was not hired to replace another employee unless that employee left the position voluntarily or was terminated for cause.
• Is not a relative of the employer.

For these qualifying employees, the employer is provided an exemption from the employer’s 6.2% share of the social security tax.

2.      You may also qualify for the New Hire Retention Credit.

The HIRE Act increases the general business tax credit for each employee that meets the above qualifications and the following:

• The employee is retained for at least 52 consecutive weeks.
• The employee’s pay in the second 26 week period must equal or exceed 80% of the pay in the first 26 week period.

Employers are eligible to receive this tax credit for each employee meeting the above criteria in the amount of the lesser of either $1000 or 6.2% of the wages paid to the employee over the 52 week period.

 Opportunities to educate yourself about the new tax incentives:

•  For answers to IRS frequently asked questions regarding the HIRE Act, click here.
• The IRS is offering an educational Webinar on July 8^th covering this new tax. You can register for this 50 minute tutorial at the following web address. www.visualwebcaster.com/event.asp?id=69705