Film Accounting Glossary
Employer identification number
What is an employer identification number?
Also called EIN, or federal tax ID.
An employer identification number (EIN) is the federal tax ID that identifies a production company, or a loan-out corporation, to the IRS.
Every production entity needs one to run payroll, and every loan-out and vendor has to provide theirs on a W-9 before accounting can issue payment. A mismatch between the name and EIN on a W-9 triggers IRS backup withholding notices months later, so vendor onboarding checks it up front.
Example
A loan-out corporation submits a W-9 showing a name and EIN that do not match IRS records. Payments go out anyway, and eight months later the production entity, now wound down, receives a backup withholding notice for 24% of everything it paid.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Collected on the W-9 at vendor onboarding, before the first payment. Every production entity needs its own to run payroll at all.
Common mistake
Accepting a W-9 without checking the name against the EIN. Mismatches produce IRS notices and backup withholding months later, usually after the entity has wound down.
Related questions
- Does a loan-out company need its own EIN?
- Yes. The production is engaging a separate corporation, so it needs that corporation's own EIN on a W-9 before any payment is issued.
- What happens if a W-9 name and EIN do not match?
- The IRS issues a mismatch notice and the payer can become liable for backup withholding on amounts already paid, which is why it is checked at onboarding.