2007-04-23 07:05:15 · 4 answers · asked by banuelos_k 1 in Business & Finance ➔ Taxes ➔ United States
They are two completely different numbers. The federal ID is used by the federal government in identifying a company when they pay federal, medicare, and social security taxes.
The State tax ID number is used only by the state the company orginates from to pay state and local taxes and unemployment taxes as well.
2007-04-23 07:11:52 · answer #1 · answered by Fool in the Rain 6 · 2⤊ 1⤋
A state tax ID is used to report state taxes (sales, income, etc) you need one for every state you conduct business in. The federal tax id is used to pay your federal taxes.
2007-04-24 03:12:58 · answer #2 · answered by Amy F 3 · 0⤊ 0⤋
One is for Federal tax purposes and the other is for State tax purposes. Some states use your Federal number (and all states use your SSN for individual taxes) and others issue their own.
2007-04-23 14:18:47 · answer #3 · answered by Bostonian In MO 7 · 2⤊ 2⤋
This would apply to Company i.d.'s to pay their taxes deducted from their employees. That way whatever is deducted from your wages goes into the correct account.
2007-04-23 14:12:55 · answer #4 · answered by jamsterette@sbcglobal.net 4 · 0⤊ 0⤋