If you have one or more employees, you’re required to withholdincome tax and Social Security tax from each employee’s paycheckand remit these amounts to the appropriate agency. To do so, youneed to obtain an employer identification number from the IRS usingForm SS-4; if your state has an income tax, you need to obtain anumber from the state as well. Call your local IRS office, whichwill send you a copy of the form to file along with charts todetermine payroll tax deductions, quarterly and annual forms, W-4forms, tax-deposit forms, and a manual on filling out the forms. Noadvance fees or deposits are required.
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.
