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Does a common paymaster have to file a 940/941/w-2 for each…

Does a common paymaster...

Does a common paymaster have to file a 940/941/w-2 for each corporation involved?

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The question is the same, if paid thru a qualified common paymaster does the common paymaster file a 941/940 and w-2 for each respective corporation or just a single set of forms?

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Answered in 27 minutes by:
11/7/2017
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,655
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

If each corporation has its own payroll to report, each corporation will issue its respective W-2s and file its own 940/941.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Just following up with you to see if you have any other questions. If so, please let me know so I can continue to help you.

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I apologize for my initial response.

Upon further research, the common paymaster will file one aggregate set of forms for each corporation (employer) for whom it is authorized to act.

Section 3504 Agent

A more widely available method of consolidating payrolls is to designate a payroll agent under 26 U.S.C. § 3504. An employer may request approval to have an agent who pays or controls payment of the employee’s wages file returns and make deposits or payments of Federal Insurance Contributions Act (FICA) taxes, Railroad Retirement Tax Act (RRTA) taxes, income tax withholding, or backup tax withholding. Employers generally cannot appoint an agent with respect to Federal Unemployment Tax Act (FUTA) taxes.

To request approval of an agent, employers must submit Form 2678. Approval of an agent can be requested as to some or all employees, and for some or all purposes. If the employer anticipates paying any wages to employees, it must indicate that the agent designation is for only some of its employees and continue to file returns with regard to those employees.

Once approved, the agent must file one “aggregate” return (under its own name and employer identification number) for each return period reporting the wages and employment taxes on wages paid by the agent to its employees for each employer for whom it is authorized to act. The agent must complete and attach to the aggregate return a schedule allocating the wages, taxes, and payments reported on the return to each employer, identified by name and EIN. The agent is responsible for maintaining records showing what was paid on behalf of each employer, and the employer is in turn responsible for maintaining records of the wages paid by the agent to its employees.

Thank you.

Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,655
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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