Expert: Shirley McAllister, CPP, PHR - 11/10/2008

Question
I understand the rules and forms necessary to apply with the state in order to become a common paymaster.  However, is there any federal form or agreement necessary between the companies that agree to have a common paymaster?

Answer
Common paymaster is something which would be covered under state law and also the taxation under the IRS.

You can find the IRS regulations at the IRS.gov website. The Common Paymaster has no forms to fill out to become a common paymaster except to fill out the tax forms as such when reporting.

Be sure that you are common paymaster and not common agent. Agent's have to fill out special paperwork with the IRS.

IRS Publication 15-A page 20 has reference to the taxes and the common paymaster and the common pay Agent.

The common pay Agent does have to fill out specific paperwork with the IRS , the common pay master does not.


Shirley