Who Holds the EIN Under Co-Employment?
Your company keeps its own EIN. Under a standard PEO arrangement your employees' W-2s may carry the PEO's EIN while your entity remains the worksite employer - and with an IRS-certified PEO, federal employment taxes formally shift to the PEO's EIN entirely.
Three arrangements, three answers
| Setup | W-2 issuer EIN | Practical effect |
|---|---|---|
| Non-certified PEO | Often the PEO's, reporting your worksite employees | State accounts may stay yours; wage-base restart risk on mid-year entry |
| Certified PEO (CPEO) | CPEO files under its own EIN as section 3504 agent | Federal liability sits with the CPEO; no restart on mid-year entry |
| ASO (no co-employment) | Always yours | Nothing changes legally |
Why you always keep your own EIN
Your EIN identifies the company for banking, contracts, income tax and everything outside employment administration. Joining a PEO does not merge entities - the IRS treats the worksite employer as continuing to exist. What moves is who remits and reports employment taxes, and under certification, who bears liability for them.
What to check before signing
- Ask which EIN appears on employee W-2s and state unemployment reports.
- If certification matters to you (it affects wage bases and liability), verify the contracting entity on the IRS list - not just the brand.
- For multistate teams, ask how SUI accounts map per state - see multistate mechanics.
None of this is hidden, but none of it is volunteered either - put the questions in writing during selection.
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Frequently asked
Will my business credit or contracts be affected?
No. Contracts, bank accounts and income filings continue under your EIN; only employment-tax reporting routes differently.
Do my employees' W-2s show the PEO name?
Frequently yes, including a PEO address - employees sometimes panic at verification time. Warn them, and provide the worksite-employer letter many PEOs supply.
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