Expert: Shirley McAllister, CPP, PHR - 9/13/2010

Question
We have multiple companies with separate EINs under one "holding company."  We have a salary employee in one of our companies who wants to take on part-time hourly work in another of our companies to make additional income.  Is this allowable?

Answer
She would be working two jobs at two different rates. She would be paid under two different EIN numbers. The only downside is that you now have to hold social security and medicare out on her at the second job as if she is a new employee with the second company. This may cause her to have too much withheld and she will have to file for reimbursement when she files income taxes.

You cannot count her as one employee for both companies for social security or you will have to than average her salaried wage and hourly wage and pay her overtime on the combined wages.

It would be much easier to have her working for two different EIN companies and give her two different W-2's one from each company.

Shirley