Your Employer Identification Number (EIN) — also called a Federal Employer Identification Number, or FEIN — is a nine-digit number the IRS assigns to your business. Think of it like a Social Security Number, but for your company. The IRS uses it to identify businesses, non-profits, estates, trusts, and other organizations operating in the United States.
Heads up: State and local tax agencies also require separate registration — and in most cases, they assign their own unique EINs to use alongside your federal EIN. Learn how to register for state and local tax account numbers in our state-specific registration resources.
When you set up your company account, we ask for your EIN. Select Solo customers can apply for their EIN directly in Gusto during setup.
If you need to change your EIN after setup, learn how here.
Any business that has hired — or plans to hire — at least one employee needs to apply for an EIN with the IRS. This includes people hiring themselves and paying themselves wages. Here's a breakdown by entity type:
Businesses: Sole proprietors, partnerships, corporations, and LLCs with multiple members all need an EIN.
A sole proprietor with no employees may still need an EIN if any of the following apply:
You have a Keogh plan (a retirement plan for self-employed people).
You have an excise tax filing requirement — these are taxes on specific goods, like gasoline. If you're not sure, check with your financial advisor.
You need to file employment tax returns, including returns to report backup withholding.
Backup withholding applies to certain contractor payments. We don't currently support contractor withholding in Gusto, so you'd pay those contractors outside of Gusto and issue separate 1099s.
If you're a sole proprietor paying a contractor subject to backup withholding, you still need an EIN — and you should use that EIN (not your SSN) to pay contractors and future employees in Gusto.
Non-Profit Organizations: Charities, foundations, religious institutions, social clubs, and associations.
Estates and Trusts: Estates established after an individual's death, and various types of trusts.
Employers: Any entity that hires employees, including businesses and non-profits.
If you plan to hire at least one employee, apply for an EIN as soon as possible — early registration helps avoid delays and errors when you're ready to run payroll. Before you can pay your first employee in Gusto, complete these three steps in order:
Apply for an EIN with the IRS — double-check that your company name and address are accurate on the application.
Note: Select Solo customers can apply for their EIN directly in Gusto during setup.
Complete your company onboarding in Gusto and add your EIN — this includes e-signing a Reporting Agent Authorization form (8655).
If your company details change later, you may need to re-sign this form.
Use your EIN to register with any applicable state or local agencies.
Some agencies also require you to authorize Gusto as your Third-Party Agent or Power of Attorney so we can pay and file your taxes — learn how in the applicable state registration page.
There's no downside to registering for an EIN before you hire your first employee — if you're thinking about bringing on staff, it's a good sign you're ready to register. If you're unsure, check with a financial advisor.
EIN mismatch errors happen when the EIN in Gusto doesn't match what a tax agency has on file — this can cause filings to fail or payroll to be blocked. When this happens, we'll explain why on your Home page or by email. If the steps below don't solve the problem, visit our payroll blocked troubleshooting tips article.
Here are the most common causes and how to fix each one:
Change of ownership
After a change of ownership, the IRS may issue a new EIN. If you didn't update your state and local agencies with the new EIN, our filings may fail because those agencies still have your old EIN on file.
To fix: Re-register with state and local agencies using your new EIN and close your old tax accounts. We recommend contacting the agency first to confirm their preferred process.
Typo on a state or local registration form
If your EIN in Gusto is correct but the agency has a different number on file — due to a typo or clerical error — filings may fail.
To fix: Contact the state agency and provide IRS documentation showing your assigned EIN. Ask them to correct their records and move any payments and returns to the right account.
Typo in Gusto
If the EIN entered in Gusto is incorrect, filings may fail or payroll may be blocked until it's corrected.
To fix: Contact us from the Help section of your account and provide IRS documentation showing your assigned EIN so we can update our records.