The EIN, as you might have heard before, is also known as the state employer identification number. This is an identification number that the businesses need to collect to enable them to pay state income tax.
Most businesses are bound to have their respective EIN numbers. Well, some of the businesses also stand as exceptions. For instance, the businesses that operate in the United States, which do not collect personal income tax, and the sole proprietors, who choose to use their Social Security number instead of a state EIN are exempted from possessing a state EIN.
In case you are wondering how to file your yearly income taxes or contact the Internal Revenue Service with questions you may have regarding income tax withholding amounts, then you would need the state EIN number from the employer you work for!
How to identify an EIN?
You would easily be able to identify EIN because this number occurs on line 15 of the W-2 form that you receive by the end of January each year. The EIN number can be identified as a nine-digit number that follows the format of XX-XXXXXXX.
You can simply call the human resource or accounting department of your employer and then request a representative to look up the information for you.
You can just contact the Department of Revenue for the state in which you live. If you don’t know how you can do so, then you should go and visit GovSpot.com, from where you would be able to locate the contact information for the Department of Revenue in your state.
You can also contact the department by phone or via email, and then you simply need to provide your employer’s legal business name and any other required information to receive the EIN.
Note – It is important for you to know that the states – Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee do not collect personal income tax and they do not even assign EIN numbers.
How can you get a federal tax ID number?
If you are wondering about the federal tax ID number, then don’t worry because this is not something that you need to bother about. This is because the Employer Identification Number or (EIN) that you have, is also known as your federal tax ID. You would be needing the same if you want to pay federal taxes, hire employees, open a bank account, apply for business licenses and permits, and more.
You can easily apply for an EIN, by following a not so difficult process. It is always important to do it right after you register your business.