FEIN: Federal Employer Identification Number
In order to file IRS form 941, 940, W-2 or W-3 an employer must have a 'Federal Employer Identification Number' or fein (or simply EIN). FEIN is a unique number that is issued by the IRS for employers. An employer may use his / her Social Security number in lieu of fein. That is when an employer business structure is a 'Sole Proprietorship' instead of a corporation, LLC, LLP etc. Federal Employer Identification, fein is a 9 digit number and uniquely identifies the employer who is reporting the employment taxes. Some states like New York allow employers to use FEIN for state UI filing.
Depending on the amount of tax liability IRS provides some grace period after the payday for employer to deposit the taxes. For example if you are a monthly tax depositor you have until the 15th of the next month to deposit your taxes. Every employer must file IRS form 941 and if applicable its Schedule B every quarter. Normally, you have 30 days after the end of each quarter to file the report. Almost all payroll software system calculate paycheck taxes and create a paycheck with or without pay stub. Companies like Paychex, Gusto, Adp and Quickbooks are just a few of payroll software companies that calculate paycheck taxes and deductions and create a paycheck. There is no magic. IRS sets the rules and the rates. A computer payroll software simple implements those rules. Average small businesses pays thousands of dollars every year to use one of these payroll software while they don't have to. Payroll co-op is a free payroll software for small businesses that has multiple advantages to all other payroll software companies like Paychex, ADP, Gusto, etc. Here are the reasons why you should start using Payroll co-op now: