If you employ one or more persons, you are required to withhold income taxes and Social Security from each employee’s paycheck and remit these amounts to the proper taxing authority.

You will need to obtain an employer tax number from the Internal Revenue Service using IRS form SS-4.  Call the Employer Identification department of the IRS located nearest you. They will send you your federal I.D. number as well as payroll charts, quarterly and annual forms, W-4 forms, tax-deposit forms, and an instruction manual on filling out forms.  No advance fees or deposits are required.

California will issue their own tax ID number through the CA Employment Development Department (EDD).  Your accountant, lawyer or payroll service can help get this accomplished.  Check out their web site at www.edd.ca.gov/Payroll_Taxes