Other entities may need your employer identification number to include on statements or returns they are required to file with the IRS regarding payments they have made to you. These include payments of interest, dividends, royalties, and others; payments to you as a dependent care provider, if applicable; or certain other amounts paid to you that total more than $600 for the year. If you are a sole proprietor, you will need to be clear as to who was the recipient of the payment – you as an individual, or you as an employer.
Reporting Your Payments by Payee Number
Your business makes payments that must be reported on information returns. The payee’s taxpayer identification number has to be included on these returns. This number could be either a social security number, in the case of payments to individuals, including employees, or an employer identification number, in the case of payments to individuals who have set up a business as a sole proprietorship, partnerships, corporations, and other legal entities.
If you need to report a payment and you do not have the payee’s social security number or employer identification number, you can request that number by sending the payee a Form W-9, Request for Taxpayer Identification Number and Certification. This form can be downloaded from the IRS website.