What You Need to Know About Your Employer Identification Number EIN


June 4th, 2018

There are some subjects that aren’t glamorous but necessary and your employer identification number EIN is one of them. This is one of the requirements for every business in the United States. However, there are some cyber security issues that you will need to look at.

Here’s a brief rundown on how you can keep those numbers safe.

 

Get A Plan Together

employer identification number EIN

One of the best things that you can do is develop a cyber security plan to protect these numbers and other valuable data. A good plan has several different steps as fallback positions if your data gets breached. One of the first things that you can do is make sure that your security patches are up to date.

If you don’t already have a good IT consultant on your payroll, you should get one or at least outsource to a credible company. It’s also a good idea to make sure that everyone on your staff understands and is compliant with your program.

Making it mandatory for new hires is also an excellent idea.

 

Keep Your Information Safe

Keeping all of your information safe including employer identification number EIN data means keeping it in a secure location. This is an important piece of information the IRS uses to identify a business’ tax account. It’s an important number that needs to show up on every piece of your correspondence with the Internal Revenue Service.

Here’s a helpful tip for keeping this important number safe from cyber criminals. Making sure your login is secure helps out tremendously. If you take a look at the latest innovations you’ll see biometrics is a great way to ensure you don’t get hacked.

 

Why Have an EIN?

Some businesses understand the need to have one of these numbers generally, but they don’t know if they fit into a category that makes it mandatory. Here’s a few rules you can use to decide if you should be applying for an EIN.

If your business is a partnership or corporation you’ll need to apply. Keep in mind these are for identification purposes and mandatory if you fit this category. If you have employees you should also submit the application form.

Even sole proprietorship’s need to be aware of some circumstances where they should apply. For example, if you incorporate you’ll need to follow through and get an employer identification number EIN.