SS-4, Application for Employer Identification Number

SS-4 is the IRS form used to obtain an employer identification number.  An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a nine-digit number that the IRS assigns to business entities. All EIN's have the following format: XX-XXXXXXX. The IRS uses this number to identify taxpayers that are required to file various business tax returns.

You can apply for your employer identification number by completing an online SS-4 on the IRS website.  You can download the SS-4 from the IRS website and mail it in to the address on the form. This process takes much longer than applying online which results in an instant response.  File only one Form SS-4, regardless of the number of businesses operated or trade names under which a business operates.

Although the Internal revenue Code requires that the person required to furnish an EIN apply for one, it is possible for third parties to use the online SS-4 application procedure. If it is not the taxpayer who is making an online application, the taxpayer must authorize the third party to apply for and receive the EIN.

The following procedures must be used for third parties to get authorization from the taxpayer to submit the Form SS-4 on behalf of the taxpayer and receive an EIN:

    
• The applicant (not the third party) must sign a completed Form SS-4, including the Third Party Designation, prior to the third party making the online application.
   
• The applicant must read and sign a statement that he or she understands, by providing his or her Social Security Number to the third party, that he or she is authorizing the third party to apply for and receive the EIN on his or her behalf and to answer questions about the completion of the Form. The third party can print out this web page and have the applicant sign, or the third party can use their own printed form for this statement.
    
• The third party must retain on file the signed completed Form SS-4, as well as the taxpayer's statement authorizing the online filing.     

Payroll, payroll taxes and workers compensation are facts of life for businesses with employees.  While employees may be absolutely critical to the success of your business, they consume valuable resources that increase your cost of doing business. Make a mistake in calculating payroll withholding taxes and/or paying payroll taxes and you have angry employees and the IRS to deal with.

As you proceed with your business planning, you would be wise to consider purchasing a payroll software program to help process your payroll. Take a look at our payroll software program page to get an idea what types of features and reporting capabilities are available before you buy.