itonewbie
Level 15

There is no ambiguity about this arrangement as the final regulations are clear that vendors such as PEOs are precluded from taking into account wages they pay on behalf of or with respect to other employers' common law employees.  The s-corp will report wages paid to those individuals via the PEO but only if they are your client's common law employees or officers.

See §1.199A-2(b)(2)(ii).

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Still an AllStar

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