by newlinross » Tue May 10, 2011 02:22 am
My employee was involved in a car accident; his car was struck from behind by another motorist. He missed work due to this accident. He claimed lost wages from the other person's insurance carrier. The insurance carrier sent me the claim forms to complete. The carrier is requesting my federal tax ID#. I want to complete the form for my employee but I am concerned about divulging my federal tax ID# to the carrier. Why does the carrier want my federal tax ID#? I was not involved in the employee's car accident? Can they force me to divulge that information to them?
Posted: Wed May 11, 2011 01:31 am Post Subject:
He claimed lost wages from the other person's insurance carrier. The insurance carrier sent me the claim forms to complete. The carrier is requesting my federal tax ID#. I want to complete the form for my employee but I am concerned about divulging my federal tax ID# to the carrier. Why does the carrier want my federal tax ID#?
Was this an on-the-job or off-the-job incident? It's not unusual for an insurance company to want your FEIN when it comes to applying for insurance or filing a claim. They are not going to use it for any inappropriate purpose. And . . . they can always get it from your employee's Form W2 if you don't supply it. How many of your employees have tried to get a home loan in the last 10 years? They probably gave the lender a copy of their W2 to prove income in the qualification process. Don't be so paranoid!
The insurer wants your FEIN most likely to validate the employee's reported wages. He could lie about them, you could lie about them (not suggesting that anyone is planning on lying), but tax returns may confirm what's right or wrong. Unless those have been falsified, too.
Posted: Wed May 11, 2011 05:28 am Post Subject:
Yes, they can simply manage it from the employee's form W2.
Max, we should be thankful to you for such good explanations. It also shows how the FEIN could be useful under other circumstances.
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