Preparing for payroll involves gathering some key documents to ensure a seamless and compliant setup process. Let's explore where to find these essential items:
Employer Identification Number (EIN)
Overview: The EIN is a nine-digit identifier assigned by the IRS to your business, crucial for tax reporting and other official documents.
Where to Find It:
- Previously Filed IRS Documents: Look for your EIN on forms such as Form 941, which outlines federal income tax, Social Security, and Medicare taxes withheld.
- IRS Correspondence: Official IRS letters or notices about your tax accounts also include your EIN.
- Online IRS Account: Accessing your IRS online account provides visibility into your EIN.
- IRS Assistance: If necessary, contact the IRS Business & Specialty Tax Line at 1-800-829-4933. Be ready with your business’s identifying details.
State/Local Tax ID Numbers
Overview: These identifiers are essential for fulfilling state and local tax obligations, including withholding and unemployment insurance contributions.
Where to Find Them:
- State Quarterly and Unemployment Tax Documents: These documents, akin to the federal Form 941, should list your state/local tax ID numbers.
- State Tax Department or Website: Your state's tax department's website or their direct contact can assist in retrieving or confirming these IDs.
- Previous Payroll Provider: Documents from your former payroll provider likely include these tax ID numbers.
Missing a State ID?
During setup, you can click the toggle option "Applied for but not yet received" to proceed provisionally. However, update your system promptly once you receive your State Tax ID. Accurate and updated information is essential for compliance and avoiding issues with payroll processing. Failure to do so, will result in late fees or penalties.