Does a Withholding Agent Need a Tax ID (EIN) Number?

14 Apr 2020

What is a withholding agent and where does that leave you in terms of requirements pertaining to an employer identification number. A withholding agent is someone that is the U.S. or foreign individual with control over the income of someone, who is a foreign individual, subject to tax withholding. Custody, payment, as well as the receipt, are all in play here pertaining to the income, and it all relates back to the withholding agent having full control. As a withholding agent, you are operating as a type of organization and thus you will need to have an employer identification number.

An employer identification number is a requirement when you have employees or handle any type of payroll transactions. As a withholding agent, where you are withholding income subject to taxes, you are thus going to fall under the requirement for having an employer identification number. Work with a Tax ID service provider to go through the application process in a seamless fashion. You can even apply right online to get your Non-Profit Tax ID Number.