Which identifier is used by a business for payroll tax reporting?

Which identifier is used by a business for payroll tax reporting?

• A. Social Security Number
• B. Federal Employer Identification Number
• C. Social Insurance Number
• D. Passport

Answer: (B)

Payroll tax reporting uses the business’s own tax identifier, not an employee’s personal ID. The Federal Employer Identification Number, often called the FEIN or EIN, is the nine-digit number the IRS assigns to a business to identify it on all payroll tax filings. It stays with the businesswhether you hire one employee or many and appears on forms like quarterly and year-end payroll tax returns. The employee’s Social Security Number is used for individual tax withholding, not for the business’s payroll tax reporting. The Social Insurance Number is the Canadian equivalent and not used for U.S. payroll reporting, and a passport isn’t used for tax reporting. So the FEIN is the correct identifier for payroll tax reporting.

Payroll tax reporting uses the business’s own tax identifier, not an employee’s personal ID. The Federal Employer Identification Number, often called the FEIN or EIN, is the nine-digit number the IRS assigns to a business to identify it on all payroll tax filings. It stays with the businesswhether you hire one employee or many and appears on forms like quarterly and year-end payroll tax returns. The employee’s Social Security Number is used for individual tax withholding, not for the business’s payroll tax reporting. The Social Insurance Number is the Canadian equivalent and not used for U.S. payroll reporting, and a passport isn’t used for tax reporting. So the FEIN is the correct identifier for payroll tax reporting.