Florida Building Contractor Business/Finance Practice Exam

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Which federal agency issues an Employer Identification Number?

Department of Labor
Internal Revenue Service
Occupational Safety and Health Administration
Small Business Administration

The correct answer is: Internal Revenue Service

An Employer Identification Number (EIN) is issued by the Internal Revenue Service (IRS). This number serves as a unique identifier for businesses and is used for tax purposes, enabling the IRS to track the tax obligations of employers. When a business hires employees or forms a partnership, it is required to obtain an EIN for reporting taxes and other documents. The process of applying for an EIN is straightforward and can often be completed online through the IRS website. The other federal agencies listed do not issue EINs. For instance, the Department of Labor oversees labor laws and employee rights but does not concern itself with the issuance of identification numbers for tax processes. The Occupational Safety and Health Administration (OSHA) is focused on workplace safety standards rather than tax identification. The Small Business Administration (SBA) is dedicated to supporting small businesses, but it does not issue EINs either; its focus is more on helping with loans and grants.