A business uses this federal number on tax returns and on the forms that report payments to contractors and other businesses. In practice it is the same identifier as an Employer Identification Number (EIN).
Where the Number Appears
- Income tax. A corporation, partnership, or estate files under this number rather than under an owner’s personal number.
- Information returns. A payer reports certain payments and prints the recipient’s number on the form.
- Payroll. An employer withholds tax and files employment returns under the same number.
Why Two Names Exist
Banks, vendors, and older forms say federal employer while the revenue service’s own form says employer. Both names point at the nine-digit number assigned to the entity. A sole proprietor with no employees may still need one when a bank or a client refuses to use a personal number.
| Name on the form | What it identifies |
| Federal employer number | The business, trust, or estate |
| Employer number | The same nine-digit identifier |
| A personal tax number | A person, not the business entity |