TAX GUIDE FOR SMALL BUSINESSES

New employment identification number (EIN)

You may need to get a new EIN if either the form or the ownership of your business changes. 

When you need identification numbers of other persons

In operating your business, you will probably make certain payments you must report on information returns.  You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year.  You must include the payee’s identification number and your identification number on the returns and statements.

Employees

If you have employees, you must get a Social Security Number (SSN) from each of them.  Record the name and SSN of each employee exactly as they are shown on the employee’s social security card.  If the employee’s name is not correctly shown on the card, the employee should request a new card from the Social Security Administration (SSA).  This may occur if the employee’s name was changed due to marriage or divorce.

If your employee does not have an SSN, he or she should file Form SS-5 with the SSA.

Other payees

If you make payments to someone who is not your employee and you must report the payment on an information return, get that person’s SSN.  If you must report payments to an organization, such as a corporation or partnership, you must get its EIN.

To get the payee’s SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification.

A payee who does not provide you with an identification number may be subject to backup withholding.