The information posted on PayrollTalk is for informational purposes only and is not intended to substitute for obtaining accounting, payroll, tax, or financial advice from a professional accountant.

New FEIN-EE set up

My company changes name and FEIN in middle of the year. Do employees get 2 W2s this year and their SSA limit reset or carried over from the old company? No change in ownership. I handle payroll taxes for them and our wage limit for unemployment got reset.
Thanks!

Comments

  • edited November 1

    Okay, you are going to have to explain the WHY behind the FEIN/Name change if there was no ownership change, especially the choice to do it middle of the year (as if in a hurry). Until we know why, we can't tell you for sure.

    But generally yes, there can be cases where they would get two W2s, SSA limit would reset would other limits as these would be considered new employees under the new EIN/name. Unless there is some documentation, you might also have to resubmit New hire documentation to your state.

    kiki
  • It is possible that the "successor employer" rule will apply with the SST limits. As mentioned, details are everything here.

    kikirrupert
  • Type of entity may have changed. In that case, it is definitely a successor employer situation. Social Security wage base would carry over - also two methods for handling information return reporting - One is for each employer to file W-2s for the employees that worked for it, the other is for the successor to assume reporting responsibility for the predecessor. There is a revenue procedure for this - Revenue Procedure 2004-53, 2004-34 I.R.B. 320, available at IRS.gov/irb/2004-34_IRB/ar13.html.

Sign In or Register to comment.