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Employer Identification Number

What is an Employer Identification Number (EIN)?

Employer Identification Number (EIN) is also known as Federal Employer Identification Number (FEIN) which is a unique number issued to an organization for tax purposes by the Internal Revenue Service (IRS). Any business can have an EIN as there is no size requirement in terms of employees. Thus, IRS can easily and quickly track the taxes paid by employers as it is a permanent and unique number. To report the taxes on the State level, there is State EIN, so that taxes can be reported to the State and recruit the workers.

Why Employer Identification Number is needed?

Every business needs an employer identification number as it is used while paying the taxes online, and to file the tax return. If the business is located in the USA, an employer only needs a taxpayer identification number (social security number) to apply for EIN.

Key points - Employer Identification Number (EIN)

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