Who's employees are they?

[Dennis Povloski]

Two doctors each have their own P.A. The PAs are not in any kind of partnership or anything like that, so no controlled group. They happen to work in the same office. PA #1 has all of the employees on its payroll. Some of these employees provide services for PA #1 exclusively. Some employees work exclusively for PA #2. Some employees provide services to both PA #1 and PA #2. PA #2 reimburses PA #1 for the payroll attributed to employees providing services to PA #2.

The only people that get a W-2 from PA #2 are the owner and his wife.

Both PAs are part of a multiple employer plan, so I'm trying to figure out who the employees belong to (since coverage, non-discrim, and top heavy are applied separately). They all get their W-2 from PA #1.

Since PA #2 reimburses PA #1 for its payroll expense, is there anything that somehow makes them employees of PA #2? Or are they strictly just employees of PA #1 because that's where their W-2 comes from??

If anyone can point me in the right direction, I'd appreciate it!

[rcline46]

Although many will say to look to the leased employee rules, I would suggest you look to the shared employee rules. There are only two rulings on it, both very old, but still applicable.

[david rigby]

Any help here?

http://benefitslink.com/modperl/qa.cgi?db=qa_who_is_employer

[Dennis Povloski]

That helped a great deal. Thanks all!