How to Use an EIN When Hiring Employees

Oct. 30, 2025, 1:44 p.m.
Hiring your first employee is a big milestone — and one that comes with new legal and tax responsibilities. One key requirement is having an Employer Identification Number (EIN). This unique nine-digit number, issued by the IRS, identifies your business for tax and employment reporting purposes. If you’re wondering how to properly use your EIN when hiring employees, this guide walks you through everything you need to know.
How to Use an EIN When Hiring Employees

1. What Is an EIN and Why It’s Important for Employers

An EIN (Employer Identification Number) acts like a Social Security Number for your business. It’s used by the IRS, state agencies, and financial institutions to track your company’s tax obligations.

When you hire employees, your EIN becomes essential because it allows you to:

  • Report employee wages to the IRS.

  • File payroll and employment taxes.

  • Set up state and federal tax accounts.

  • Comply with employment and labor laws.

Without an EIN, you can’t legally withhold or remit payroll taxes — which can lead to heavy fines.

2. Step 1: Apply for an EIN (If You Don’t Already Have One)

If your business doesn’t yet have an EIN, you can apply  directly through the www.einregister.online
Here’s how:

  1. Go to www.einregister.online

  2. Click “Apply Online Now.”

  3. Complete the form with your business details (name, address, structure, etc.).

  4. Receive your EIN immediately upon approval.

You’ll need to save this number securely — you’ll use it on almost every tax and payroll form moving forward.

3. Step 2: Register for Payroll Taxes Using Your EIN

Once you have your EIN, use it to register with federal and state tax agencies.

  • Federal:

    • Use your EIN to file Form 941 (Employer’s Quarterly Federal Tax Return) or Form 944 (Annual Employer’s Tax Return).

    • It’s also used to remit withheld income taxes, Social Security, and Medicare contributions.

  • State:

    • Most states require employers to register for state withholding tax and unemployment insurance using the EIN.

    • In New York, for example, you’ll need to register with the New York Department of Labor (NYSDOL) and New York State Department of Taxation and Finance.

4. Step 3: Use Your EIN for Employee Onboarding and Reporting

When hiring employees, your EIN will appear on several important forms and documents:

Form Purpose
Form W-4 Used to determine federal income tax withholding.
Form W-2 Annual wage and tax statement sent to each employee.
Form I-9 Verifies employee eligibility to work in the U.S.
State Payroll Forms Used for reporting and remitting state-level taxes.

All these forms will reference your business name and your EIN to properly identify your company as the employer.

5. Step 4: Reporting and Paying Employment Taxes

Every pay period, employers must:

  • Withhold federal and state income taxes.

  • Withhold and match Social Security (6.2%) and Medicare (1.45%).

  • Deposit these taxes under your EIN via the Electronic Federal Tax Payment System (EFTPS).

At the end of the year, you’ll use your EIN to file:

  • W-2s for each employee.

  • W-3 Summary Report (transmitted to the SSA).

  • 941 or 944 forms for the IRS.

6. Step 5: Keep EIN Records Secure

Your EIN is a permanent identifier — protect it like a business SSN. Avoid sharing it unnecessarily and store it safely. If it’s ever stolen or misused, contact the IRS immediately to report business identity theft.

7. Final Thoughts

Using your EIN correctly when hiring employees ensures you’re fully compliant with IRS and state employment laws. It allows you to:
 Pay employees legally
 File taxes accurately
 Protect your business from penalties

Hiring staff is a sign your business is growing — and your EIN is the foundation of a legitimate payroll system.