How to Add or Change EIN in QuickBooks Payroll Subscription

The proper Employer Identification Number (EIN) is required to ensure that running payroll in QuickBooks complies with federal and state tax laws. The EIN is your company’s identifier with the IRS and other agencies, where your company’s wages, payroll taxes, and employee information are reported. When there are changes in your business, like restructuring, changing ownership, or establishing a new business, you might need to add or update the EIN in your QuickBooks Payroll subscription.

This article gives you a detailed step-by-step guide on how to add or update your EIN in the different versions of QuickBooks Payroll, the limitations associated with it, and what you must do according to the type of subscription you have.

What is an EIN?

The nine-digit number, known as the Employer Identification Number (EIN), is assigned by the Internal Revenue Service (IRS) to a business entity. Similar to a Social Security number, which identifies individuals, an EIN is needed by employers who pay wages, withhold taxes, and file payroll reports.

The EIN is essential in the processing of payroll as it connects all employment tax returns, deposits, and other related records that are affiliated with your business. An incorrect EIN can cause your filings to be rejected, fined, or result in compliance issues with the IRS and the state agencies.

Method to Add EIN to QuickBooks Desktop

QuickBooks Desktop has different editions of EIN depending on the version and the type of subscription.

Here’s how to approach it:

• You have to open QuickBooks Desktop & Log into the company file.
• Proceed to ‘Employees/ Payroll/ Use My Existing Payroll Service.’
• Enter the information about your EIN in the Account Maintenance window.
• In case you are opening a new firm with a new EIN, you will have to buy the specific EIN subscription independently. QuickBooks does not permit the use of several EINs on a single subscription.
• Add the payroll service to the new company file by following the instructions presented on the screen.

Account for Payroll (for QB Desktop 2017 and earlier versions)

In previous editions of QuickBooks Desktop (2017 and older), the addition or editing of an EIN had to be done manually in terms of subscription management. As these versions are no longer supported through live updates of payroll, the users usually had to:

• Contact Intuit Payroll Support: Assistance was needed to update subscription information associated with an EIN.
• Manually Update Records: Records were to be reviewed, and occasionally, they had to be corrected to reflect accurate tax reporting.
• Consider Upgrading: Due to the lack of support with older versions, the simplest solution is to upgrade to either a newer QuickBooks Desktop or QuickBooks Online Payroll version.

You may also read this: How to Edit Company Information In QuickBooks Desktop

How to Change Employer Identification Number (EIN) in QuickBooks Payroll

Switching your EIN in QuickBooks varies depending on which version of QuickBooks you are using either QuickBooks Online Payroll or QuickBooks Desktop Payroll.

General steps include:

• Check with IRS before updating the new EIN.
• Confirm whether your subscription permits changes in EIN (in most instances, you have to initiate another subscription).
• Change the EIN in payroll preferences or by the help of Intuit.

Change EIN in QuickBooks Online Payroll Premium and QuickBooks Online Payroll Elite

• Login into QuickBooks online account.
• Click on Settings and payroll settings.
• Select Company Information.
• Complete the new EIN in the Federal Tax Information.
• Click on save changes and check the number

Note: If the EIN is associated with a completely different business, a new subscription will be required. EIN corrections can only be carried out in case you made a mistake during establishment.

You may read this: How to Fix QuickBooks Payroll Update Errors

Change EIN in QuickBooks Desktop Payroll Assisted

Assisted Payroll Intuit handles your payroll taxes and lodgings. Since filings are directly linked to your EIN, they need to be directly coordinated with Intuit:

• Call QuickBooks Assisted Payroll Support.
• Present records of new EIN (IRS letter).
• On their part, Intuit will update the payroll account.
• As soon as it is confirmed, your payroll returns and deposits will be filed and shown using the new EIN.

Note: You will not be able to update the EIN on your own in Assisted Payroll. This makes it compliant and avoids rejections by the IRS.

Change EIN in QuickBooks Desktop Payroll Basic, QuickBooks Desktop Payroll Standard, and QuickBooks Desktop Payroll Enhanced

The EIN is established at the time of first activation of the payroll in these types of subscriptions. If you need to change it:

• Go to Employees > My Payroll Service > Manage Service Key.
• Choose the active service key and verify the EIN field.
• In case of being wrong, then you might have to call Intuit Payroll Support to amend it.
• You will have to buy a new subscription of the new EIN in most instances.

As Basic, Standard, and Enhanced Payroll versions are not managed services, it is more flexible, although you must not forget that all filings should be managed properly after the change.

Important Points to Consider Before Changing the EIN in QuickBooks

• Confirm changes in legal structure: A change in EIN is usually required when there is a change in business structure (e.g., from a sole proprietorship to a corporation).
• Separate records: Keep separate payroll records for the old and new EIN to ensure tax compliance.
• Quarterly and year-end filing: Changing EIN mid-year can complicate W-2 and tax filing; it’s best to do this at the beginning of the quarter or year.
• Impact on payroll service: For assisted payroll, notify Intuit as they handle submissions and deposits.
• Employee records: Update W-2s, tax records, and employee details with the new EIN.

How to Update Employer Identification Number (EIN) in QuickBooks Desktop Payroll Service

When you are staying in QuickBooks Desktop Payroll Service then the following are the steps:

• Always Save Your Company File and make changes.
• Open QuickBooks and go to Employees- Payroll Center.
• Check Company and EIN data.
• In case of typo error in the EIN, you can change it in the Payroll Setup Interview.

When the EIN is associated with a separate business entity, you will have to buy another subscription and create payroll again under a new company file.

Limitations and prerequisites for adding an EIN to QuickBooks Payroll programs

It is necessary to comprehend the limitations and requirements regarding adding and modifying an EIN within the QuickBooks Payroll before doing so:

• Payroll subscriptions each have an EIN: Each QuickBooks Payroll subscription is linked to a single EIN; you cannot use the same subscription for multiple businesses with different EINs.
• New subscription for a new EIN: Starting a new business or obtaining a new EIN usually requires purchasing a separate payroll subscription.
• Historical data associated with the EIN: The original EIN is linked to payroll records, tax returns, and employee files, and changing it may cause compliance and reporting issues.
• IRS registration: You must be registered and active with the IRS before you can update your EIN in QuickBooks.
• Version-specific limitations: EIN update options vary depending on whether you are using QuickBooks Online Payroll, Desktop Payroll Assisted, or Desktop Payroll Enhanced/Basic/Standard.

Conclusion

QuickBooks uses the Employer Identification Number (EIN) for payroll processing and tax compliance with the IRS. The ability to add or change an EIN depends on your subscription type. In QuickBooks Online Payroll Premium and Elite, you can make minor corrections directly in payroll settings, but if you are setting up an entirely new business, a new subscription is required. In QuickBooks Desktop Payroll Basic, Standard, and Enhanced, updating an EIN usually requires assistance from Intuit and, in most cases, a new subscription. For QuickBooks Desktop Assisted Payroll, only Intuit can update the EIN because it handles tax filing on behalf of the business.

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