Social Security Now Allows You to Self-Select Gender

Beth Dean 10.27.22
SSN and gender - Nextep compliance update

How to handle the SSN in the workplace

The Social Security Administration has announced that an individual may now self-select their gender on their social security number (SSN) record.

Previously, the sex marker would have to match medical records and other legal documentation. Now, a person can select the male or female sex designation of their choice for the SSN, even if it does not match medical records or other documents.

As part of the Administration’s Equity Action Plan, this move “includes a commitment to decrease administrative burdens and ensure people who identify as gender diverse or transgender have options in the Social Security Number card application process,” said Acting Commissioner Kijakazi.

This change does not currently include options for nonbinary people. However, they are looking into possible future system updates that may include an optional sex designation of “X.”

Although the SSN card does not include a sex marker, people who self-select a different sex for the SSN will still need to apply for a replacement card, according to the Administration. The individual must present documentation verifying their identity, but the Administration will not use the documentation to determine sex designation.

The Department of State announced plans to extend gender self-selection across other documents and identification procedures. Currently, individuals may also self-select their sex marker on passports, including male, female, or X. 

What does this SSN change mean for employers?

The big question is what this means for employers, particularly in recordkeeping and the I-9 document verification process.

In keeping with the government agencies, we recommend allowing employees to self-select their sex marker when processing new hire forms. 

I-9

Your employee’s gender identity may not match across all documents. For I-9 verification purposes, for example, it will be acceptable if the sex markers on the passport and birth certificates don’t match. 

Technically, though, this shouldn’t pose an issue since the document verification process for section two of the I-9 only requires one document from list A or one each from lists B and C. Therefore, if your employee presents a passport for identification, that lone document must suffice to establish both identity and employment authorization, as well as the sex marker. No additional documentation would be needed.

E-Verify

An additional consideration is the E-verify process. Nextep administers this service for our clients by uploading new hire SSNs to the E-Verify portal. This process verifies authorization to work in the US. 

With the Social Security Administration rule change, it will no longer matter if an employee’s sex marker returned from E-Verify does not match other documentation. The criteria we do consider is if the name matches what the Social Security Administration has on file.

Benefits

Health and supplemental benefits may be another matter. We are working with our insurance carriers to determine how to handle sex markers for those purposes and will update you as we learn more. In the meantime, employees may need to use their biological or medical sex designation for health records. 

In this instance, this information should be treated as private health information (PHI) and not used as part of the employment process. As a reminder, an employee has no obligation to share their PHI with an employer. In fact, we recommend the opposite. 

You may have questions about this change enacted by the Social Security Administration. We’re here to help! For one on one advisement of these latest regulations, avoiding sex-based discrimination in the workplace, or creating a more diverse, equitable, and inclusive workplace, please reach out to Nextep’s HR experts.

Nextep Weekly Tip Signup

Also on Nextep

Summer heat does not wait for paperwork. When temperatures surge past triple digits across the South and Midwest, heat safety is compromised. Your crew on the asphalt or inside an unconditioned warehouse faces real danger within minutes. OSHA updated its National Emphasis Program for heat hazards to sharpen its enforcement focus. They added 22 industries […]
Read more
Mark your calendars! New compliance rules take effect this October, and protecting your business starts with knowing what is changing. The latest updates bring major changes to state and federal employment laws, changing everything from workplace policies to payroll. Key changes include the federal repeal of OFCCP affirmative action mandates and Alabama’s ban on sexual […]
Read more
States are enacting new workplace artificial intelligence laws that focus on transparency and worker privacy. If your business uses software to score applicants or screen current employees, state laws now demand clear notices and strict record-keeping. Connecticut will require a disclosure starting in October when AI informs major employment decisions. Colorado mandates notices for job […]
Read more
When shopping for the right PEO for your business, you’ll naturally look for a few checkpoints, such as technology, employee benefit options, and customer service. But perhaps the biggest point you’ll need assurance on is their trustworthiness. That’s where ESAC accreditation comes in. The Employer Services Assurance Corporation (ESAC) is one of the Professional Employer […]
Read more
It can be tricky to determine whether to classify your employees as exempt vs nonexempt. Good thing we’re here to help.  Exempt vs. Nonexempt: Exempt means that an employee doesn’t receive overtime pay regardless of hours worked. Nonexempt means that an employee must receive overtime pay (typically at a rate of time and a half) […]
Read more
July brings a fresh wave of state and federal compliance updates. Nextep has the complete rundown to keep your business on track. Get started using these quick links: Part 1: Federal Compliance Spotlight: New EEOC National Enforcement Plan On June 4, 2026, the Equal Employment Opportunity Commission (EEOC) voted to replace its previous Strategic Enforcement […]
Read more
When a week of snow plows across the United States, it leaves a few important questions. Is travel to the workplace safe? Who absolutely needs to be there? And which employees will get paid? How do I prepare for inclement weather days? Having an inclement-weather policy answers all the questions above in advance for you […]
Read more
If your employee needs health-related time off, the Family and Medical Leave Act (FMLA) may require your company to provide it. This FMLA 101 guide will help you navigate the process. Now that we’ve covered the basics, this guide will explain the Family and Medical Leave Act (FMLA) to help you handle employees’ leave requests […]
Read more
It’s that time of the year again! To stay current with the latest federal regulations, ensure your workplace labor posters are up to date. This helps you avoid potential fines and stay compliant. Several state compliance laws have changed at the start of the new year, which may require you to update your employees’ posters. […]
Read more
For years, HR teams have asked: If an employee has a 30-minute appointment, but it takes them an hour to get there, is that drive time Family Medical Leave Act (FMLA)-protected? The Department of Labor (DOL) just gave us a definitive answer in Opinion Letter FMLA2026-2. For employers, this is both a compliance requirement and […]
Read more
In December 2025, the Occupational Safety and Health Administration (OSHA) highlighted seven specific Letters of Interpretation (LOI). Below is a summary of what this means for the employer and how these resources can be used to mitigate risk. The Big Picture: Why This Matters OSHA is signaling a shift toward a “compliance assistance” model. Rather […]
Read more
As we kick off 2026, we’d like to give you a heads-up regarding changes to Federal Unemployment taxes (FUTA) for employees in California, the Virgin Islands, and New York. Some states are subject to a “Credit Reduction,” which essentially means employers in those states pay a higher federal unemployment tax rate to cover outstanding federal […]
Read more

Download the Elevate by Nextep™ App


Download the Nextep Mobile App in Apple iOS or Google Play