• What does an Employer ID (EID) number do?
  
  
• I'm a sole-proprietor. Do I need an EIN?
  
  
• Do I need an employee ID (EIN) number?
  
  
• I have a daytime job.  Do I have to pay employment taxes again?
  
  
• When do I pay income FUTA and FICA taxes?
  
  
• I can't stand doing taxes. Where can I get help?
  
  
• If my business goes under, will I be responsible for unpaid taxes?
  
  
  

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• What does an Employer ID (EID) number do?
  
  The EIN is used when a business files its federal income taxes. The EIN helps to create a distinction between your personal and business taxes.
  
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• I'm a sole-proprietorship.   Do I need an EIN?
  
  If you're a sole-proprietor with no employees, you do not need an Employer ID number (EIN) to file your income taxes. You can use your social security number instead of the EIN in this case.
  
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• Do I need an employee ID (EIN) number?
  
  If your company is a corporation, limited liability or partnership, you need an Employer ID number from the IRS. Even if your corporation has no employees, you'll still need to apply for an Employer Identification Number.
  
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• I have a daytime job.  Do I have to pay employment taxes again?
  
  Perhaps not! If you have another source of income that is also collecting and paying income, FUTA and PICA taxes, this may reduce the amount of additional taxes owed. Therefore, take the time to calculate how much if any additional income taxes will be due as a result of income paid to you through your company.
  
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• When do I pay income, FUTA and FICA taxes?
  
  To determine when to file returns or to make tax payments, get a copy of IRS form 509. This form is referred to as the tax calendar.
  
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• I can't stand doing taxes.  Where can I get help?
  
  There are many business owners who absolutely hate the work involved in calculating and paying employment taxes. If this sounds like you, we suggest that you use your bank or hire a tax firm that specializes in payroll. These services are fairly inexpensive. It may not be worth the cost if you only have one or two employees.
  
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• If my business goes under, will I be responsible for unpaid taxes?
  
  If you are a sole-proprietor, you can be held responsible for all unpaid taxes even if the business fails. For this reason, it is a good idea to set a priority on paying or legally avoiding taxes. Unlike some other outstanding debts, tax indebtedness cannot be wiped out through bankruptcy.  In fact, with the recent changes to the Bankruptcy laws implemented by the current Republican Congress, there are surprisingly few other debts that can be removed through bankruptcy.  By putting a priority on making sure taxes are paid, you avoid later financial problems if the company fails.
  
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