7shifts Payroll: Multi EIN Support

The Multi-EIN feature allows you, as a 7shifts Payroll user, to manage payroll for multiple distinct legal business entities—each with its own unique Federal Employer Identification Number (EIN)—all from a single 7shifts account.

Core Concepts & Terminology

Key Requirements & Feature Activation

⚠️ The Multi-EIN feature is designed for specific business structures. Before requesting this feature, please confirm your company meets all the following prerequisites:

Multi-EIN Qualification Criteria

Feature Activation: How to Get Multi-EIN Enabled

Please contact the 7shifts Support team to confirm that you meet the qualification criteria above and enable this feature.

1. Initiate the Request: 
   • Navigate to your Payroll Dashboard.
   • Click on the Business Entity dropdown, you'll see the option to +Add a new business entity.
   • Clicking this option will instruct you to Contact Support.
     
2. Contact Support: Reach out to our support team using the ? Help option in the bottom-left corner of your 7shifts account. 
3. Provide Details: In your request, clearly state that you like to enable Multi-EIN support for 7shifts Payroll.
4. Confirm Eligibility: Our support team will confirm that you have reviews and meet all the requirements listed in the Qualification Criteria section above.
5. Next Steps: Once your account is qualified and the feature is enabled, we'll connect you with our Payroll Onboarding team to guide you through the initial Multi-EIN setup.

Multi-EIN Functionality 

The following outlines the updated navigation and functionality you will see after Multi-EIN is enabled on your account.

Adding Business Entities

• Navigation: 
  1. From the web app, navigate to your Payroll Dashboard.
  2. Click on the Business Entity dropdown, you'll see the option to +Add a new business entity.
• Setup: When a new Business Entity is added, you will be prompted to click 'Add business details' specifically for that new entity.
• Editing Restrictions: Once payroll has been run for a Business Entity, its details (including the EIN) cannot be edited to ensure data and tax integrity.

Adding a Location to an Existing Entity

1. Navigate to Payroll.
2. Select the appropriate Business Entity from the list.

3. Go to the Locations tab and click Add location to payroll.

   ⚠️ Note: The location you wish to add must already exist in your 7shifts account and cannot already be assigned to another Business Entity.

Employee Sharing and Assignments

• Multi-Entity Work: Employees can now work and be paid across multiple locations and multiple Business Entities (EINs) within the same 7shifts account.
• Entity Selection: For employees assigned to multiple EINs, a dropdown menu will appear in employee tabs (like Benefits and Time Off/PTO) allowing you to select and manage the entity-specific settings.
• Employment History: An employee's active employment record in Employment History will now explicitly list the Business Entity or Entities they belong to.
• Primary Location: The employee's designated primary location still plays a role, as it influences tax reporting and the default EIN assignment.

Employee Onboarding

• Multiple Packages (Legal Requirement): Employees assigned to multiple EINs must complete a separate onboarding package for every Business Entity they are assigned to.
• Package Sending: When sending an onboarding package, you must select the correct Business Entity. Packages cannot be sent if the entity’s payroll setup is incomplete.

Payroll Processing

• Separation of Payroll: Payroll is processed separately for each EIN. This means hours worked for locations under one EIN will be paid via a distinct payroll run from hours worked under a different EIN.
• Pay Documents: Employees working for multiple entities will receive separate pay stubs and, at year-end, separate W-2s from each legal entity.

Paid Time Off (PTO) Policies

• Entity-Specific: PTO policies are now tied directly to a specific Business Entity. You can create distinct policies for each legal entity.
• Assignment: When creating a policy, you must assign it to a specific Business Entity. The PTO list clearly labels the associated entity.
• Employee Rule: Each employee can only be assigned to one of each policy type (e.g., one PTO policy, one Paid Sick Time policy). This policy is governed by the business entity they are assigned to for payroll purposes.
• Editing Restriction: Once an employee is assigned to a PTO policy, the associated Business Entity for that assignment can no longer be edited.

FAQs

What is a Business Entity?
A Business Entity represents a unique legal organization within your company that has its own EIN (Employer Identification Number). In 7shifts, Business Entities help structure payroll, PTO, and onboarding independently for each EIN.

Can I edit a Business Entity after payroll has started?
No. Once a Business Entity begins processing payroll, its setup details are locked to preserve data accuracy.

Can an employee be paid under two different EINs?
Yes! With employee sharing, employees can now be assigned to multiple Business Entities. Hours worked at each entity will be processed separately, and employees will receive separate tax documents and onboarding packages per EIN.

Do employees need to complete multiple onboarding packages?
Yes. Each EIN is a distinct legal entity, so employees must complete a separate onboarding package for every Business Entity they are assigned to.