EIN vs SSN Rental Property W-2

[vman2]

I have a rental property. I want to issue a W-2 to my under child whom I paid throughout the year for small jobs around the property. My understanding is to issue a W-2, I need an EIN. If I do so. How does that work in relations to when I file my taxes, since they are under my SSN, as is the bank accounts.

How does this work in relation to the the property if its in a trust. Do I just file the taxes for the income/expenses for the property (in the trust in my SSN) or with the new EIN.

Thanks for any insight in advance.

[JohnB5677]

If it is a Trust, and your son is actually working for the Trust, you will use the Trust's EIN on the W-2, and it will be an expense to the Trust.  

If you are posting the work being done for the Trust on a schedule C on your tax return, and you use your SSN for the schedule C, your son's W-2 will have your SSN.  

Note, if this is the case you should be getting a 1099-NEC from the Trust to fund your Schedule C.

[vman2]

Thanks for the response. All my expenses for this property have been reported on Schedule E. Does that make a difference?

I was under the impression that for W-2, you NEEDED to use an EIN and ONLY an EIN. Is that really not the case?

Just out of curiosity, what if this were a grandchild. Would one still use SSN vs EIN?

[Anonymous_]

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@vman2 wrote:

I was under the impression that for W-2, you NEEDED to use an EIN and ONLY an EIN. Is that really not the case?

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That is, indeed, the case; if you have employees, you need an EIN.

See https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein

For quarterly reports, see https://www.irs.gov/instructions/i941#en_US_202206_publink1000294644

[vman2]

So in addition to issuing the W-2, you have to file a form 940 & 944? Any other forms you have to file? Pretty lame you can't do that thru Turbotax.

Do you also have to get a State issued ID? For Mass in my case.

[Anonymous_]

There are almost certainly other forms that need to file with MA.

For federal, see https://www.irs.gov/faqs/small-business-self-employed-other-business/forms-940-941-944-and-1040-sch-...

Note that TurboTax is simply income tax preparation software and does not support payroll (or accounting). If you need that, consider QuickBooks (or an outside payroll service).

https://quickbooks.intuit.com/payroll