Comparison: EIN vs SSN

There is a lot of confusion about the Employer Identification Number and the Social Security Number. Most people have a hard time setting these two apart. This article seeks to help shed some light on the issue.

EIN vs. SSN

The confusion is perfectly understandable. After all, these two documents serve a similar purpose. They are used by the government to keep track of one’s taxes. The only difference is that the Social Security number is given to an individual. Meanwhile, the EIN is used by an employer, a corporation, a proprietor for tax purposes. The EIN also applies to all types of non-profit organizations, partnerships, trusts, and estates as well as other business entities.

The Internal Revenues Service utilizes these numbers to properly identify the taxpayers who need to file business tax returns. Employers should also take note that they have the choice to make use of either when reporting the taxes they withheld on behalf of their employees.

That being said, it is vital that readers understand these subtle but vital differences. Hopefully, this has been helpful in terms of enriching your understanding of the matter.

There is a lot of confusion about the Employer Identification Number and the Social Security Number. Most people have a hard time setting these two apart. This article seeks to help shed some light on the issue.

EIN vs. SSN

The confusion is perfectly understandable. After all, these two documents serve a similar purpose. They are used by the government to keep track of one’s taxes. The only difference is that the Social Security number is given to an individual. Meanwhile, the EIN is used by an employer, a corporation, a proprietor for tax purposes. The EIN also applies to all types of non-profit organizations, partnerships, trusts, and estates as well as other business entities.

The Internal Revenues Service utilizes these numbers to properly identify the taxpayers who need to file business tax returns. Employers should also take note that they have the choice to make use of either when reporting the taxes they withheld on behalf of their employees.

That being said, it is vital that readers understand these subtle but vital differences. Hopefully, this has been helpful in terms of enriching your understanding of the matter.

Understanding the EIN Basics

The Employer Identification Number is a vital piece of document that all businesses must have if they wish to operate legally. However, most prospective entrepreneurs have a hard time grasping its importance and how it works. This article will try to explain some of the basic points one needs to understand about EIN. Hopefully, this would make the entire process that much easier.

EIN Basics

To avoid confusion, it needs to be stated outright that the Employer Identification Number is also known as the Federal Employer Identification Number (FEIN). It is also the same as the Federal Tax Identification Number (FTIN). All of these pertain to the same document.

In a nutshell, the EIN is a nine-digit number specifically assigned to business entities by the Internal Revenue Service (IRS). It is used by the United States government to properly identify each of these organizations. Needless to say, the EIN assigned to a company is unique.

This is the basic rule that applies to all forms of organizations operating as a business, including non-profit ones. Its primary purpose is to ensure that your organization is paying the proper taxes.

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