How to Update EIN in QuickBooks Payroll: Complete Guide

You may need a new EIN from the IRS to file tax returns and pay your employees if the organization or ownership of your firm has changed. This post will walk you through each step: How to add, edit, and change EIN in QuickBooks Payroll account, and then update it in QuickBooks Desktop Payroll.

Meaning of the term EIN in QuickBooks Payroll

The EIN, or Employer Identification Number, is a nine-digit number that the Internal Revenue Service uses to keep track of a company’s tax liabilities. Most QuickBooks Payroll Subscription customers who need to add an EIN will require specific information, including their zip code, payroll service key, and EIN. Business entities, such as corporations, partnerships, and limited liability companies, must utilize EINs. Several businesses generally require an EIN. There are several methods by which you can apply for an EIN.

How can we add EIN to QuickBooks Payroll?

Here is a step-by-step guide to help you understand the method of adding an EIN for an existing payroll user.

• Open QuickBooks and select Employees from the Payroll tab.
• Select the option Use my existing payroll service from the menu.
• In the Identify Subscription menu, find the Use Subscription Number option.
• If you are not able to locate an option that displays your subscription, then you can select: I already have a subscription and so I’ll just fill up the blanks.
• To add your EIN, go to the Add Company Information screen and click Next.
• Click the Print button to get a print, or select the Return to QuickBooks Desktop button to return to the desktop.
• To activate the Department Key, navigate to the Employees tab, My Payroll Services, and click Manage Department Key.
• Then, click on the View option, and you will receive an active Service key.

Note: You can also call us if you have any problems adding your EIN or company to your payroll account. Our certified payroll professionals are always available to help you and are available 24*7.

Reasons behind why you change EIN in QuickBooks Payroll

As a company grows and attracts more consumers, the owner may decide that it’s time to change the company’s structure. Usually, to reduce the risk, changing the business to a sole proprietorship or partnership is done. These decisions can lead to having a new EIN. Otherwise, if you want to change your EIN in QuickBooks Payroll, you must first make modifications to your business entity.

• Partnership: If you have a partnership that is acquired by one of the partners and will now be run as a sole proprietorship, or if you’re ending one partnership and starting another, you’ll need a new EIN.
• Sole Proprietorship: If you’re a sole proprietor, then you’ll need to modify or apply for a new EIN. Whether you form a partnership or recruit partners, declare bankruptcy, or inherit or buy an existing business to run as a sole proprietorship.
• Corporations: If your business is a corporation, you’ll need to change or apply for a new EIN, if you change the structure from your business to a partnership or sole proprietorship, if you are or become a subsidiary of a business that uses the parent company’s EIN, or if you change your business structure and a new corporation is formed after a statutory merger.

Also, you won’t need a new EIN if you make minor changes to your business, such as changing your name or address. However, the IRS warns that if your company’s ownership or structure changes, you’ll need to file for a new EIN. Next is a guide added related to changing the EIN.

Basic solutions to update the EIN in QuickBooks Payroll

Look for these steps that will help you solve your issue:

• First, go to the Company icon and then select the option: My Company
• Go to the Business Identification tab and select the Federal Employer Identification Number option.
• Then, enter the new EIN pin.
• Click on OK.
• Next, contact us so we can update our records with your EIN.

Conclusion

Changing the EIN in QuickBooks Payroll isn’t as simple as editing company information, because the EIN is directly tied to your business’s payroll tax reporting. If you need to update your EIN, you’ll have to create a new payroll subscription and re-enter your company and employee details under the correct number. This process ensures compliance with IRS regulations and avoids payroll tax errors.

If you’re unsure how to proceed, contacting QuickBooks Payroll Support via chat or a payroll professional can help you make the transition smoothly and avoid any compliance issues.

Frequently Asked Questions