Employer Identification Number (EIN)

By Entrepreneur Staff

Employer Identification Number (EIN) Definition:

A 9-digit number obtained by a business with paid employees from the IRS. If you're a sole proprietorship, your EIN is your social security number.

If you have one or more employees, you're required to withhold income tax and Social Security tax from each employee's paycheck and remit these amounts to the appropriate agency. To do so, you need to obtain an employer identification number from the IRS using Form SS-4; if your state has an income tax, you need to obtain a number from the state as well. Call your local IRS office, which will send you a copy of the form to file along with charts to determine payroll tax deductions, quarterly and annual forms, W-4 forms, tax-deposit forms, and a manual on filling out the forms. No advance fees or deposits are required.

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Alternative Minimum Tax (AMT)

A separate tax system designed to keep high-earning corporations and individuals from reducing their taxes to a level that the federal government considers too low

Employer Identification Number (EIN)

A 9-digit number obtained by a business with paid employees from the IRS. If you're a sole proprietorship, your EIN is your social security number.

Medicare Taxes

The tax you withhold from your employees' paychecks to cover the cost of Medicare expenses

Tax Deductions (aka Standard Business Tax Ded

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