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 the 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 customers of the QuickBooks Payroll Subscription who need to add an EIN will need some specific information, such as their zip code, service key, and EIN. Business entities, such as corporations, partnerships, and limited liability companies, must utilize EINs. EIN is generally required by several businesses. 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 making you understand the method of adding 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 of yours, 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 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. Else, 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 number, 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 EIN.
Basic solutions to change EIN in QuickBooks Payroll
Look for these steps that will help you in solving your issue-
- First, Go to the Company icon and then select the option: My Company
- Go on 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: We hope you have received the information on the steps related to changing the EIN in QuickBooks Payroll. In case any issue occurs, then get in touch with our team experts via chat or call guidance.
How can I be able to use my Internet EIN to pay taxes or file returns?
The EIN is a permanent number that can be used for most of your business requirements, such as for:
1. Building a bank account.
2. Obtaining a business license.
3. Mailing in a tax return.
How much cost is needed for EIN?
There is no cost or service fee related to the EIN (employer identification number). There are several options for obtaining an EIN, but the simplest and most usual is to apply online.
Is there a need to change EIN in QuickBooks Payroll?
When there is any kind of change in ownership of a business, a new EIN is required. Although if you are changing your business name then you don’t have to obtain a new EIN. Read more about the reasons: https://quickbooks.intuit.com/r/taxes/what-is-an-ein-and-does-your-business-need-one/
Is it necessary for me to have a specific computer or software in order to receive an EIN via the Internet?
No. You can access the EIN from any computer with an Internet connection. You must have a current Internet browser in order to view and finish the application process.