Overview of employer identification number
An Employer Identification Number(or EIN) is a unique, nine-digit number used to identify and keep track of businesses for tax-filing purposes, just like you’d use a Social Security number to identify yourself. Businesses of all sizes and types need their own EIN to pay taxes on their earnings, hire employees, and open a business bank account. It’s a requirement for filing taxes and helps the Internal Revenue Service (IRS) to easily identify each specific business entity.
Understanding employer identification number
EINs are designed to be used a company’s federal tax ID and are issued for many reasons, including filing taxes, opening business banking accounts, and applying for government-controlled permits and licenses. Businesses can use their EIN to identify themselves while dealing with other businesses, the IRS, and other organizations. An EIN also becomes your company’s legally recognized identification number and it remains valid whether the business moves, merges or changes ownership structure.
EINs are issued by the IRS, and the Business Services division of the Social Security Administration (SSA) can also issue it. You can apply for an EIN free of charge through the IRS website, and you may receive a number by telephone or via the online application within the same day.
Obtaining an employer identification number
There are multiple ways to obtain an EIN. Business owners can obtain an EIN through:
- Online Applicants can obtain an EIN via the online application form from the IRS website.
- Telephone Applicants can also call the IRS’s Business and Specialty Tax Line to get an EIN by answering a series of questions from an IRS representative.
- Fax The IRS’s toll-free fax service is another way to apply for an EIN. Business owners can request and receive an application by fax and submit the completed form.
- MailBusiness owners can submit a paper TIN application form, SS-4, to the IRS in order to get an EIN.
FAQs
What is the EIN number in India?
India does not have an Employer Identification Number system but it does have a Before Tax Deduction and Collection Account Number (TAN) that is issued by the Central Board of Direct Taxes(CBDT).
What is an example of an employer ID number?
An example of an employer ID number would be: 45-0934314.
What is employer ID details?
Employer ID details contain information related to an organization such as its name, address, legal structure, tax identification number, type of organization, and other relevant details.
Also, See : Employer Contribution
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