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

amare@abataxaccounting.com

Direct 612-282-3200

Toll free 866-936-0430

http://www.abataxaccounting.com/CustomJ.htm

Advertisements

The URI to TrackBack this entry is: https://abataxaccounting.wordpress.com/2012/03/22/when-you-need-employer-identification-numbers-of-other-persons/trackback/

RSS feed for comments on this post.

One CommentLeave a comment

  1. […] When you need Employer identification numbers of other persons.(abataxaccounting.wordpress.com) Rate this: Share this:FacebookTwitterPrintMoreDiggRedditStumbleUponEmailLinkedInTumblrLike this:LikeBe the first to like this post. Posted in Practice Tips & Helpers, Primary Source Documents, Statutes, Rules, & Regs. Leave a Comment » […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: