Expert: Arthur Naman - 1/12/2010

Question
I'm an executive assistant who is assisting our corporations in implementing a common paymaster agreement in Texas. Through research I've learned there are no specific forms to be filed out with the IRS but we want to have an agreement in our files which allows us to move employees between corporations through out the year without it affecting payroll taxes etc. At the end of the year we want to be able to give one W-2 form. Can you lead me to a sample agreement of this type also known as a "Common Paymaster Agreement"?

Answer
Please review the rules at IRS Pub 15A, Sec. 7 "Rules for Common Paymasters" (www.irs.gov). In particular. please note The subsection "Agents."

As for a sample agreement, I fioud the following:  http://contracts.onecle.com/dex/dex.emp.2003.12.31.shtml  That agreement covers a variety of issues, including a common paymaster.

I also found:  http://contracts.onecle.com/dex/dex.emp.2003.12.31.shtml -- which is for Florida but could be modified to fit Texas. I have not reviewed any Texas provisions regarding a common paymaster.

Who is the CPA assisting your companies -- what suggestions do they have. Also are you using a payroll service -- do they have information dor you.

I am also in Texas. If I may be of further assistannce, please contact me via a AllExperts.