Federal Employer Identification Number for W2 Purposes
To keep track of the millions of firms and establishments in the United States, the Internal Revenue Service (IRS) assigns each of them a unique, nine-digit number called the Federal Employer Identification Number. Also known as the Federal Tax Identification Number, the FEIN can be found in "Box b" on a W-2 form.
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Requirement
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Any business or individual with one or more employees must register with the IRS in order to submit employment and withholding taxes. Registration entails getting a FEIN. Employers with household workers such as maids, nannies and caretakers also need a FEIN. The IRS defines a domestic employee as one for whom the employer controls the work done and how it is performed.
Application
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In July 2007, the IRS introduced a free, online FEIN application. According to USASpending, the IRS assigned more than 2.8 million Federal Employer Identification Numbers through this Internet process in the 2009 fiscal year. A "Yes" answer to any of the application's six questions indicates the need for a FEIN. Other ways to apply include phoning the IRS Business and Specialty Tax Line and mailing or faxing a completed Form SS-4 to an IRS service center. Phone applications take a week to process; allow four to five weeks for faxed or mailed applications.
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Before Confirmation
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The IRS advises writing "Applied for" and the application date on your tax form when your FEIN has not been confirmed by the tax return date. When the FEIN has not been processed prior to a deposit due date, the IRS wants the business name from Form SS-4 and application date on your check.
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References
- US Census Bureau: Statistics of U.S. Business 2007
- AMPMInsure: FEIN - Federal Employer Identification Number
- General Services Administration: Explanation of Your 2008 Wage and Tax Statement (IRS Form W-2)
- Internal Revenue Service: Businesses with Employees;
- Internal Revenue Service: Hiring Household Employees
Resources
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