When you need Employer identification numbers of other persons.

Small Business Tax Accounting – In operating your business, you will probably make certain payments you must report on information returns. You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year. You must include the payee’s identification number and your identification number on the returns and statements. 

Employee.   If you have employees, you must get an SSN from each of them. Record the name and SSN of each employee exactly as they are shown on the employee’s social security card. If the employee’s name is not correct as shown on the card, the employee should request a new card from the SSA. This may occur if the employee’s name was changed due to marriage or divorce. 

Other payee.   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person’s SSN. If you must report payments to an organization, such as a corporation or partnership, you must get its EIN. 

A payee who does not provide you with an identification number may be subject to backup withholding. For more information about this or preparing any tax return for prior years or for the 2012 filing season, please contact us:

ABA Tax Accounting

Amare Berhie, Senior Tax Advisor


Direct 612-282-3200

Toll free 866-936-0430


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