Can Church Preschool use same EIN Number

[john23]

Hello,

I need help with this question spoke with a CPA and IRS and still not a clear answer need to know if anyone knows. I have been approached by my church to start their nonprofit Daycare Calgary preschool centre wich we have about 80 registered so far. Two sessions each day. My questions is can the preschool named New Hope Baptist Preschool use the same EIN number that the church has or does it need to de a new one. I have tried for two weeks to get this questions answered not even the help desk at IRS has answered it and I want to make sure I go into this the right way in the beginning. Any assistance would be helpful because Im lost with this one. Thanks!

[NeilZ]

I'm really surprised that the CPA couldn't answer this to your satisfaction. All we can do here is offer suggestions, we are not accountants.

I'm guessing the CPA said that if the church itself is going to pay the salaries of the staff from its budget, and thus make the preschool staff church employees, cover them under its insurance, pay the employer's part of Federal Social Security/Medicare, and any workers compensation, you do not need a separate EIN.

However, if they are to have their own payroll, separate Employer payments, etc then YES, I would get a separate EIN, and keep their books separate from the church's.

FWIW .. its very easy to get an EIN, you can even do it online. https://www.irs.gov/businesses/small-bu ... ein-online

However, you would also need to follow the directions about getting it tax exempt as that is not automatic even though its part of the church itself.

Once more ... I am not an accountant. You cannot use the advice given here as 'authoritative', nor as 'professional' advice. Our recommendation is always to talk to an accounting firm that is familiar with Church Fund Accounting procedures.