The Social Security Number (SSN) and the Federal Employer Identification Number (FEIN or EIN) are two different identification numbers that are used to identify people and corporations for tax purposes. Despite the fact that they are both distinctive identification numbers, they differ in some significant ways. SSN, or Social Security Number The Social Security Administration issues nine-digit SSNs to foreign nationals with work permits in the US as well as citizens of the country. This number is largely utilized for tax purposes as well as tracking a person’s earnings and Social Security contributions. (FEIN or EIN) Federal Employer Identification Number An EIN, usually referred to as an FEIN, is a nine-digit number that the Internal Revenue Service (IRS) issues to businesses and other entities. When filing tax returns and making tax payments, a business entity is identified by this number, which is largely used for tax purposes.
Is it possible to seek for an EIN number online? The answer is that you can look up an EIN number online. You can find the company’s tax filings on the SEC’s EDGAR database, use the IRS’s online EIN Assistant tool, or use a for-profit business that specializes in EIN lookups.
Will Instacart provide me with a 1099? You should anticipate receiving a 1099 form from Instacart if you made more than $600 working for them in a given year. This form will list your earnings and any taxes that were deducted. Does Instacart deliver a W-2? No, W-2 forms are not sent to customers of Instacart. This is so that Instacart users can pay their own taxes as they are treated as independent contractors rather than employees.
In light of this, what kind of business is Instacart for tax purposes?
Instacart is regarded as a gig economy platform for tax purposes. This indicates that it is a company that links clients with workers for transient, project-based labor. You are regarded as an independent contractor and are in charge of paying your own taxes as an Instacart customer. This entails submitting a Schedule C form along with your tax return and deducting from your earnings both income tax and self-employment tax.
Finally, even though SSNs and EINs are both distinctive identification numbers, they have different uses. An SSN is used to keep track of a person’s income and Social Security payments, whereas an EIN is used to identify a company entity for taxation purposes. You will receive a 1099 form outlining your earnings as an independent contractor working for Instacart, and as a gig economy employee, you are in charge of paying your own taxes.