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EIN Number
Employer ID Number - eventually you will need one
EINs are used to identify the tax accounts of employers, certain sole proprietors, corporations, partnerships, estates, trusts, and other entities.
If you don't already have an EIN, you need to get one if you:
- Have employees,
- Have a qualified retirement plan,
- Operate your business as a corporation or partnership, or
- File returns for:
- Employment taxes, or
- Excise taxes.
Applying for an EIN.
You may apply for an EIN:
- Online - The EIN is issued immediately once the application information is validated.
- By telephone at 1-800-829-4933 from 7:00 a.m. to 10:00 p.m. in the applicant's local time zone.
- By mailing or faxing Form SS-4, Application for Employer Identification Number.
When to apply. You should apply for an EIN early enough to receive the number by the time you must file a return or statement or make a tax deposit. If you apply by mail, file Form SS-4 at least 4 to 6 weeks before you need an EIN. If you apply by telephone or through the IRS website, you can get an EIN immediately. If you apply by fax, you can get an EIN within 5 business days.
Bottom Line: Also know as a Federal Tax Identification Number, it is used to identify a business entity. Even if you don't have an employee(s), it is a good idea to get an EIN# so that you will have it to file a return or make a deposit.
Don't have an EIN #, apply for one online
Need more information?
Hiring Employees
Federal Documents - ALL Employers:
Have the employees you hire fill out I-9 Form and W-4 Form. If your employees qualify for and want to receive advanced earned income credit payments, they must give you a completed W-5 Form.
W-4 Form
W-4 Form is a federal tax form that must be filled out by new employees before they receive their first paycheck. Filers must indicate the number of personal allowances they are taking, including dependents, to determine how much money will be withheld for payroll taxes. Each employee must fill out W-4 Form, Employee's Withholding Allowance Certificate. You will use the filing status and withholding allowances shown on this form to figure the amount of income tax to withhold from your employee's wages. This form should be retained in your company files - a copy is NOT sent to the IRS.
Download W-4 Form
Requirements for Filling Out
Request that new employees bring two forms of identification during their first day of work. Two popular forms of identification used on tax forms are state issued identification such as a driver's license or IDs and Social Security ID cards. Make sure to make copies of the new employee's ID, which should be kept in the employees file. You can may specifically ask for these specific identification documents a social security card for tax purposes. For identifying proof of eligibility to work in the US, the new employee has a choice from an"approved" list of documents on an I-9.
W-5 Form
An eligible employee who has a qualifying child is entitled to receive advance earned income credit (EIC) payments with his or her pay during the year. To get these payments, the employee must give you a properly completed W-5 Form, Earned Income Credit Advance Payment Certificate. You are required to make advance EIC payments to employees who give you a completed and signed Form W-5. A NEW FORM MUST BE FILED EACH YEAR.
NOTE: You must notify employees who have no federal income tax withheld that they may be able to claim a tax refund because of the EIC. Although you do not have to notify employees who claim exemption from withholding on Form W-4 about the EIC, you are encouraged to notify any employees whose wages for 2007 were less than $37,783 ($39,783 if married filing jointly) that they may be eligible to claim the credit for 2007. This is because eligible employees may get a refund of the amount of EIC that is more than the tax that they owe.
You will meet this notification requirement if you issue the employee W-2 Form with the EIC notice on the back of Copy B, or a substitute W-2 Form with the same statement. You will also meet the requirement by providing Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC), or your own statement that contains the same wording.
If a substitute for W-2 Form is given to the employee on time but does not have the required statement, you must notify the employee within 1 week of the date that the substitute for the W-2 is given. If the W-2 is required but is not given on time, you must give the employee Notice 797 or your written statement by the date that the W-2 is required to be given.
Form Link: English
Form Link: Spanish
Additional Information
Purpose of Form
An employee who expects to be eligible for the earned income credit (EIC) and expects to have a qualifying child can use this form to get part of their earned income credit (EIC) in advance with their pay, if they choose to do so. However, an employer cannot give more than $1,826 throughout the year with your pay.
The W-5 Form is invalid if it is incomplete, unsigned, or has an alteration or unauthorized addition. The form has been altered if any of the language has been deleted. Any writing added to the form other than the requested entries is an unauthorized addition.
You should consider the W-5 invalid if an employee has made an oral or written statement that clearly shows the W-5 Form to be false. If you receive an invalid form, tell the employee that it is invalid as of the date that he or she made the oral or written statement. For advance EIC payment purposes, the invalid W-5 Form is considered void.
You are not required to determine if a completed and signed W-5 Form is correct. However, you should contact the IRS if you have reason to believe that it contains an incorrect statement.
What's New
Caution - Change to Form W-5, Earned Income Credit Advance Payment Certificate (Rev.
January 2009) and Formulario W-5(SP), Certificado del Pago por Adelantado del Credito
por Ingreso del Trabajo (Rev. January 2009)
The American Recovery and Reinvestment Act of 2009 (P.L. 111-5) increased the earned income credit for joint filers and for taxpayers with 3 or more qualifying children. This affects the 2009
Form W-5 and 2009 Formulario W-5(SP) because it increases the amount of adjusted gross income you can have and still receive the advance earned income credit if you are married filing jointly.
The paper and online versions of the form will not be revised, but the Act affects the instructions
as follows:
- On page 1, in item 3 under Who is Eligible To Get Advance EIC Payments, the AGI amount of $38,583 for married filing jointly should be replaced with $40,463.
- On page 2 of Form W-5 and page 3 of Formulario W-5(SP), question 3 should read: "Do you expect that your 2009 earned income and AGI will each be less than: $35,463
($40,463 if married filing jointly) if you expect to have 1 qualifying child; $40,295 ($45,295 if married filing jointly) if you expect to have 2 qualifying children; or $43,279 ($48,279 if married filing jointly) if you expect to have 3 or more qualifying children?"
- On page 2 of Form W-5 and page 3 of Formulario W-5(SP), under the "Yes" answer to question 3, the AGI amount of $38,583 for married filing jointly should be replaced with $40,463.
Where to file
The employee must provide to you a properly completed Form W-5 each year. You are required to make advanced EIC payments to employees who give you a completed and signed Form W-5.
I-9 Form
You must verify that each new employee is legally eligible to work in the United States. This includes citizens and noncitizens. Both you and the employee must complete the U.S. Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification within three days of starting work. This form should be retained in your company files - a copy is NOT sent to ICE, but must be available for inspection if audited by ICE.
Form Link: English
Form Link: Spanish
Note: The Spanish version of Form I-9, may be filled out by employers and employees in Puerto Rico ONLY. Spanish-speaking employers and employees in the 50 states and other U.S. territories may print this for their reference, but may only complete the form in English to meet employment eligibility verification requirements.
More Information
Purpose of Form
All U.S. employers must complete and retain a Form I-9 for each individual they hire for employment in the United States. This includes citizens and noncitizens..
Requirements for Filling Out
On the form, the employer must examine the employment eligibility and identity document(s) an employee presents to determine whether the document(s) reasonably appear to be genuine and relate to the individual and record the document information on the Form I-9. The list of acceptable documents can be found on the last page of the form.
Where to File
Do not file Form I-9 with U.S. Immigrations and Customs Enforcement (ICE) or USCIS. Form I-9 must be kept by the employer either for three years after the date of hire or for one year after employment is terminated, whichever is later. The form must be available for inspection by authorized U.S. Government officials (e.g., Department of Homeland Security, Department of Labor, Office of Special Counsel).
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