Expect the use of social security numbers by employers to be a hot topic over the next few months. The universal use of social security numbers for everything from payroll employee IDs to default computer system log-ins and the rash of identity thefts have caused privacy advocates to push for limitations. As of the first of next year in New York state, employers will be prohibited from using social security numbers for any purpose other than tax and withholding reporting. The new law specifically prohibits the use of numbers (either the full number or just the last four digits) on payroll sheets, identification tags, key cards and similar items. Presumably, this will include third-party items such as health insurance ID cards and outsourced payroll checks.

At least six other states have similar laws under consideration. It probably makes sense now to begin eliminating the use of social security numbers for any purpose.