Posted by John Schenk on 8/13/09 9:08pm
Msg #299896

Do you have an Employer Identification # or use a SS #?

I recently obtained an Employer Identification Number, which is what I use for my W-9s, and W-2 at work, and no longer use my SS #. It was actually recommended to me by a member here. Just wondering how many of you have switched over? From the time of the switch your estimated tax payments, and your tax returns, are filed with the EIN instead of your SS#.

The only real advantage I see is that your SS # isn't floating around out there on W-9s. I'd be interested in knowing any pros and cons that any of you may have.

JJ

Reply by firegirl on 8/13/09 9:15pm
Msg #299899

I have an EIN that I use for the notary/signing business. I don't know of any 'cons' to using it.

Reply by Linda_H/FL on 8/13/09 9:18pm
Msg #299900

I have a FEIN...got it about 6 months after I started...

on the advice of posters here..

Reply by John Schenk on 8/13/09 9:26pm
Msg #299907

Re: I have a FEIN...got it about 6 months after I started...

The IRS confirmation only refers to it as an "Employer Identification Number (EIN)," not FEIN. Are you saying there is a difference?

Thanks!

JJ

Reply by Linda_H/FL on 8/13/09 9:30pm
Msg #299909

Same same...Federal Employee Identification Number n/m

Reply by John Schenk on 8/13/09 9:49pm
Msg #299913

Re: Same same...Federal Employee Identification Number

I'm not a Federal Employee nor am I a Federal Employer so I simply have an Employer Identification Number, which is why I asked if there was a difference. We both just have a Federal Tax ID#. Gotcha!

JJ

Reply by PAW on 8/14/09 8:37am
Msg #299954

Re: Same same...Federal Employee Identification Number

"Federal" in the sense that the EIN is issued by the Federal government, not that you are an employee/employer of the Federal government.

EIN's are often referred to as FEIN's, especially if state and/or local governments also issued their own tax ID numbers.

Reply by JanetK_CA on 8/14/09 2:29am
Msg #299936

Me too. I wouldn't give out my SSN anymore to anyone. n/m

Reply by KODI/CA on 8/13/09 10:30pm
Msg #299923

I have an EIN. Got it many years ago when I started doing tax preparation. Very good to slow down identify theft.

Reply by John Schenk on 8/13/09 11:46pm
Msg #299929

Thank you all for the good info!

I feel better now.

JJ :-)

Reply by ReneeK_MI on 8/14/09 3:31am
Msg #299938

You used an EIN on your W-2?

How's that gonna work? The EIN is for the business owner/employer. I could be wrong, but I think a W-2 has to have a SS; W-9 would be the EIN.

Reply by Michelle/AL on 8/13/09 11:41pm
Msg #299928

I have an EIN. It has not posed a problem for

loan closings. It did prove to be troublesome when I would sign up to conduct Mystery Shops. The EIN disqualified me from actually being eligible to perform shops as it gave me a company/employer identity. I had to re-register with my SSN. Other than that, no problems at all - even when filing taxes.

Reply by MW/VA on 8/14/09 8:17am
Msg #299950

I started using an EIN several years ago, also at the advice of other notaries. That way I'm not giving my SS# to any questionable companies. I file my taxes with a Schedule C, using the EIN # on that, and my SS# on the return. The IRS will have to #s linked to be sure. I never heard of using it on a
W-2. Why would you worry about giving your SS# to your employer?

Reply by Jim/AL on 8/14/09 8:39am
Msg #299956

In response to why would you worry about giving your SS no to your employer.

Think about it, if the employer is large or even not, then your SS# is in their database (possibly worldwide) tied to ALL your other info, legal name, address, DOB, sometimes also your DL# and even bank account # for direct deposit. All it takes is one dishonest employee using or selling that bundle of info. and you have major problems.

IMO if you have the EIN, use it whenever/wherever you can.

Not legal info, not an attorney, yada,yada.

Glad you made this move John!

Reply by PAW on 8/14/09 8:47am
Msg #299962

>>> Think about it, if the employer is large or even not, then your SS# is in their database (possibly worldwide) tied to ALL your other info, legal name, address, DOB, sometimes also your DL# and even bank account # for direct deposit. All it takes is one dishonest employee using or selling that bundle of info. and you have major problems. <<<

That's exactly why I never provide my SSN, DL# nor bank account# to my clients. I establish a business relationship with my clients, so they don't need any personal information, other than license and commission information (which is public information anyway).

Reply by Roger_OH on 8/14/09 9:51am
Msg #299970

An EIN is the tax ID for your business; your SSN is the tax ID for YOU. When you complete your W-4 form ((Not W-2; that's what your employer sends you every January) with how many dependents you have, etc, then your employer matches your contribution to your Social Security account, and you draw it out when you're of qualifying age.

Using an EIN instead of SSN for your real employer would not seem to me to serve any purpose, and might wreak havoc with your retirement; it's for your BUSINESS dealings!

Reply by John_NorCal on 8/14/09 10:32am
Msg #299986

You're spot on Roger....

SSN's are just that, they are meant to identify your contributions to social security. The IRS uses them to identify your return. While an EIN and SSN are linked in IRS records, that is not the case at the Social Security Administration. So, as has been stated, an EIN is for your BUSINESS and a SSN is for your PERSONAL.

Reply by PAW on 8/14/09 11:42am
Msg #300009

I may be wrong (correct me if I am, Jim) but I think Jim/AL was using the term "employer" to mean a hiring agency, such as a signing service or title/escrow company, employing the services of an independent contractor.

I fully agree that anyone in a strict employee/employer relationship must supply their own social security number for tax purposes. EIN's just won't work in that situation.

Reply by PAW on 8/14/09 8:44am
Msg #299960

EIN's protect YOU and ...

EIN's 'hide' your SSN from prying eyes. May help in preventing identity theft and false reporting. In my opinion, it also provides a more professional appearance in some circumstances. For example, I will soon be doing employment verification for local companies and professionals. Having an EIN associated with my business name indicates that they are doing business with a business entity, and not a particular person (even though it is I that will be doing all the work). They don't need to know how many 'employees' are in the business, just that they have a B2B (Business to Business) relationship.

Reply by Jess/CT on 8/14/09 9:48am
Msg #299969

Just got my # after reading all of your posts, thanks for the advice!