Paying an employee that works in two process levels with Separate EINs

eokoth

This was posted several years ago but I do not see an answer.

We are looking at paying employees from two different EIN numbers by adding a secondary position for the second EIN. Currently, the breakout displays on the PR197, but the PR198 posts it all to the home process level. All liabilities show as coming from the primary EIN. We would like it to split. Is there a setup we are missing? Ex FICA employer match is all charged to the home process level. Is there a setup that will allow the FICA expense to be appropriately charged across process levels?

Also for those doing this? How are you handling 1095Cs considering that the employee will receive 2 W2s.

thank you

Edith

VID023_Extending Resources for Translatable Strings.zip

unknown

Hey Edith,

We have a similar situation with our captive PC practices.  Our family medicine practices are housed under 1 EIN, but they come under different Companies on the GL side.  There are a couple of options to work around this:

1. PR23 - Payroll Distribution Employees.  I have only read about this, but it is possible to override the payroll distribution for an employee to map it to the correct entity.  We do not employ this ourselves, but maybe somebody else in the community is aware of this option. 

2. PR05 - Deduction.  On the more tab add additional accounts.  If the employee is being paid under different process levels then the deductions should map to those entities.  If the additional accounts are not mapped then it will continue to hit on the main account defined for accrual and expense accounts. 

2. GL25 (Intercompany Relationships) or GL30 (Interzone Relationships.  Our Family Medicine Practices has 1 process level that is the independent process level.  The other practices are the dependent process levels underneath.  When Payroll runs the Head Process Level pays the employees their wages.  However, we utilize GL25 to create due to/due from relationships so the money is transferred in the GL from the Dependent Process Levels to the Head Process Level.  This will show on the PR197.  We use this only for the actual wages paid.  All of the deductions are mapped in PR05 to their correct process level. 

As for ACA I would recommend running BN996 - ACA Hours.  The entity where the employee worked the most hours is responsible for sending the 1095-c.  I am not sure what it would do if the hours were split down the middle (probably assign it to the Head Process Level).  For ACA Purposes the employee only needs to receive 1 1095-c.  The EINs should be linked on the BN299 submission that is sent to the IRS. 

I apologize for the wordy response, but hope this helps.