In the operation of a business, you will probably make certain payments you must report on information returns, discussed later under Information Returns. You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year. The forms used to report these payments must include the payee's identification number, as well as your identification number.

Employee. If you have employees, you must get an SSN from each of them. Record the name and SSN of each employee exactly as they are shown on the employee's social security card. If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. This may occur if the employee's name has changed due to marriage or divorce.

If your employee does not have an SSN, he or she should file Form SS-5, Application for a Social Security Card, with the SSA. This form is available at SSA offices or by calling 1-800-772-1213.

Other payee. If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. If you make reportable payments to an organization, such as a corporation or partnership, you must get its EIN.

To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. This form is available from IRS offices or by calling 1-800-829-3676.  If the payee does not provide you with an identification number, you may have to withhold 31% of the payments as backup withholding. For information on backup withholding, see Form W-9, the Instructions for the Requester of Form W-9, and the Instructions for Forms 1099, 1098, 5498, and W-2G.

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