Use multiple EINs in one 7shifts Payroll account
7shifts Payroll supports multiple EINs in one 7shifts account. Multi-EIN lets you run payroll for several legal business entities, each with its own Federal Employer Identification Number (EIN), from a single account. You can use the Multi-EIN set up instead of opening a separate 7shifts account for each EIN. It's available only to customers who process payroll with 7shifts Payroll, and 7shifts Support must turn it on first.
Things to know
- This feature is available only to customers who process payroll using 7shifts Payroll. It isn't available for customers who use one of our integrated payroll partners.
- Only Admin users can access 7shifts Payroll.
Key Terminology
These terms appear throughout this article. Use the definitions below to understand how 7shifts Payroll organizes your business.
| Term | Definition for 7shifts Customers |
|---|---|
| EIN (FEIN) | The Federal Employer Identification Number, which is the unique tax ID for a business entity. |
| Business Entity | This represents the distinct legal organization structure that the EIN belongs to. We use this term in 7shifts to avoid confusion with your overall Company account. |
| Employee Sharing | An employee can be assigned to and work for multiple Business Entities (EINs) within your single 7shifts account. |
Confirm your business meets the Multi-EIN requirements
Multi-EIN works for specific business structures. Before you request this feature, confirm that your company meets all of the following requirements.
Multi-EIN qualification criteria
| Qualifying question | Requirement and customer impact |
|---|---|
| Do your locations operate across multiple states? |
Yes, with considerations. 7shifts Payroll supports a single EIN with locations across multiple states, as well as multiple EINs operating across different states within a single account. Compliance and jurisdiction settings are managed at the location level, so each location can be assigned its own state jurisdiction. Review your setup with our team to understand current reporting capabilities for multi-state configurations and confirm it's the right fit for your business. |
| Do all locations have the same pay schedule and frequency? |
The answer must be YES. For example, all locations process payroll biweekly on the same day. If your separate EINs have different pay frequencies, Multi-EIN isn't a fit for a single account. |
| Do you have employees with different wage types across locations (e.g., salaried in one location, hourly in another)? |
Employees should have the same wage type (all hourly or all salaried) across all locations and entities. Mixed wage types don't block Multi-EIN, but they need extra steps. If you proceed with an employee who has mixed wage types, choose one of these options:
|
How to enable Multi-EIN for 7shifts Payroll
Important: 7shifts Support must confirm that your account meets the requirements above before Multi-EIN is enabled.
- Go to your Payroll Dashboard.
- Select the Business Entity dropdown, then select + Add a new business entity. The dropdown directs you to contact support.
- Select the ? Help option in the bottom-left corner of your 7shifts account.
- In your request, clearly state that you'd like to enable Multi-EIN support for 7shifts Payroll.
- 7shifts Support confirms that your account meets the requirements.
- If your account meets the requirements, 7shifts Support connects you with our Payroll Onboarding team to guide you through the initial Multi-EIN setup.
Multi-EIN functionality
The following outlines the navigation and functionality you see after Multi-EIN is enabled on your account.
Adding business entities
- From the web app, go to your Payroll Dashboard.
- Select the Business Entity dropdown, then select + Add a new business entity.
- When you add a new Business Entity, select Add business details for that new entity.
Once payroll runs for a Business Entity, you can't edit its details, including the EIN. This protects your data and tax integrity.
Adding a location to an existing entity
- Go to Payroll.
- Select the appropriate Business Entity from the list.
- Go to the Locations tab and select Add location to payroll.
Note: The location you want to add must already exist in your 7shifts account. It can't already be assigned to another Business Entity.
Employee sharing and assignments
- Employees can work and get paid across multiple locations and multiple Business Entities (EINs) within the same 7shifts account.
- For employees assigned to multiple EINs, a dropdown menu appears in employee tabs, such as Benefits and Time Off (PTO). Use it to manage the entity-specific settings.
- An employee's active record in Employment History lists every Business Entity they belong to.
- The employee's primary location still determines tax reporting and the default EIN assignment.
Employee onboarding and new hires
-
When you add a new employee through the Team > Add Employee modal, a second modal appears. Use it to confirm payroll details and select the Business Entities the new hire should be assigned to right away.
The option to send an onboarding package in this flow appears only if the employee is assigned to one business entity.
If the employee is assigned to more than one entity, the onboarding option doesn't appear in this modal. Send the packages manually by going to Team > Onboarding > Send New Package.
- Employees assigned to multiple EINs must complete a separate onboarding package for every Business Entity they're assigned to. This is a legal requirement.
- When you send an onboarding package, select the correct Business Entity. You can't send packages if that entity's payroll setup is incomplete.
Payroll processing
- Payroll is processed separately for each EIN. Hours worked at locations under one EIN are paid in a distinct payroll run from hours worked under a different EIN.
- Employees who work for multiple entities receive separate pay stubs and, at year-end, separate W-2s from each legal entity.
Paid time off (PTO) policies
- PTO policies are tied to a specific Business Entity. You can create a distinct policy for each legal entity.
- When you create a policy, assign it to a specific Business Entity. The PTO list labels each policy with its entity. Assign the employee to the policy for the entity under which you want their PTO paid out.
- Each employee can be assigned to one policy of each type, such as one PTO policy and one Paid Sick Time policy. That policy follows the business entity the employee is assigned to for payroll.
- If an employee works across multiple entities, PTO accruals are calculated from the total hours worked across all entities, even though the employee is assigned to a single entity's policy.
- After an employee is assigned to a PTO policy, you can't change the Business Entity on that assignment.
FAQs
What is a Business Entity?
A Business Entity is a legal organization within your company that has its own EIN (Employer Identification Number). In 7shifts, each Business Entity organizes payroll, PTO, and onboarding separately for its EIN.
Do I need a separate 7shifts account for a second EIN?
No, if you use 7shifts Payroll and meet the requirements above you can add the second EIN as a Business Entity in your existing account. Consider opening a separate account when the new business needs its own account owner, admins, company settings or billing plan.
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, an employee can be assigned to multiple Business Entities. Hours worked at each entity are processed separately, and the employee receives separate tax documents and onboarding packages for each EIN.
Do employees need to complete multiple onboarding packages?
Yes. Each EIN is a distinct legal entity, so the employee must complete a separate onboarding package for every Business Entity they're assigned to.