Lending Employees

Company A will pay Company B employees and report the payroll deductions and Company A's portion of Social Security, Medicare, and Federal and State taxes for all hours worked, including drive time to the project site, field inspection time, office report preparation time, management/coordination time and quality assurance review time. Other employee benefits will remain the responsibility of Company B.

Due to contact constraints, they cannot be hired as an Independent Contractor, or as an outright subcontractor.

Has anyone come across a situation where one company lent employees to work for another company, such that the other company will pay taxes, but the company from where the employees came from was responsible for their benefits?

Will they be considered employees of Company B if they are on another company's payroll? Can the employee be on two company's payroll at the same time?

How does benefits work? Can we still pay their benefits even thought they are not working for us? Can we contribute to their 401(k) even thought they are not technically working for us?

Can anyone help me out or offer any suggestions?

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