Employee works for more than one company

[perplexedbypensions]

Hi everyone!

On the annual information questionnaire we send to clients, we ask if their company shares the services of any employee with any other business entity.

Their bookkeeper has responded that he works for 3 other companies, 2 that pay him as a W2 employee, and one as an independent contractor.

The owners of the company do not have any ownership in the other businesses in which this employee works.

My question is - do I care?  Would I only have an issue if any of these companies had common ownership?  Is there anything else that I should be asking?

Thank you very much!!!

[Larry Starr]

As presented, you don't care.  

As to common ownership issues: yes, you need to know about that but that has nothing to do with this employee per se but with all the rules about controlled groups and aggregating and testing controlled groups.

[austin3515]

The key is that the 3 separate employers are not "sharing" the employee.  The bookkeeper just has 3 separate jobs/clients.  Think about two independent CPAs who operate as separate Schedule C's, each with their own clients.  But they hire a secretary who is paid by CPA 1, and CPA 2 reimburses CPA 1 for half of her pay.  That secretary is a shared employee.  It doesn't really change if they each pay her directly for half of her time, but these things are usually set up where one reimburses the other.   

[david rigby]

I suggest, in the future, you clarify what is meant by "share".