A merger occurs when one company with one federal EIN Employer Identification Number is absorbed into a second company with a different federal EIN. For example, in a statutory merger, Corporation M merges into Corporation N. At this time, Corporation M files a final return and its federal EIN is discontinued, while the surviving Corporation N continues using its previously assigned federal EIN. In addition, the employees of Corporation M are considered unemployed, although they may be rehired by Corporation N.
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Mergers (Corp M merges into existing Corp N) |
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At time of Merger: |
After Merger: | |
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Corp: M |
Corp: N |
New (Existing) Corporation: N |
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EIN: M |
EIN: N |
EIN: Same as N |
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Employees: Considered unemployed by Corp M (i.e., taxable wages end) |
Employees: Retain employment with Corp N (i.e., taxable wages continue) |
Employees: Corp M employees may be "re-employed" with Corp N (i.e. , taxable wages begin); Corp N employees retained (i.e. taxable wages continue) |
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Form 941: Final return filed, reporting wages and taxes paid by Corp M up to point of merger |
Form 941: Filed normally, reporting wages and taxes paid by Corp N up to point of merger |
Form 941: Filed with EIN for Corp N, reporting wages and taxes paid by Corp N after point of merger |
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Form 940: Not filed |
Form 940: Filed under Corp N, see next column |
Form 940: Filed with N’s EIN, reporting all employer wages and taxes for calendar year for Corp M, N, and "new" Corp N |
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Forms W-2: Not filed |
Forms W-2: Filed under Corp N, see next column |
Forms W-2: Filed with N’s EIN, reporting all employee wages and taxes for year for Corp M, N, and "new" Corp N |