When contracting with temp or payroll services, make sure it’s clear who the real employer is — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

When contracting with temp or payroll services, make sure it’s clear who the real employer is

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in Employment Law,Human Resources,Small Business Tax,Small Business Tax Deduction Strategies

Sometimes, it’s possible for an employee to have two employers. That’s often the case when a temporary service provides workers for a client, and both the temp company and the client exercise significant control over how and when the work is performed.

But now there’s a new wrinkle. The Court of Appeal of California has refused to extend this joint-employer concept to a company that handled the details of payroll and workers’ compensation insurance and listed itself as the employer on tax filings and other government forms.

Recent case: John Futrell’s work involves providing freelance security services during the production of television commercials. In 2002, Reactor Films, a production company, engaged Futrell and other temporary workers to work on its commercials. Reactor outsourced the payroll and insurance functions to a company called Payday California.

Payday listed itself as the employer on paystubs, tax filings and o...(register to read more)

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