Merger and Acquisitions - Employee ID Record - Multiple or Single
Good afternoon. I am seeking information from others who may have a multiple entity structure through mergers or acquisitions.
We are in our first endeavor of an M&A with another facility. When we set up our system, we maintained one company structure with multiple process levels, each process level defined with the unique tax EIN. GHR defined with multiple entities under one organization.
Our set-up was done with the intention that every person would only have one Employee ID (HR11). Recently, it has been presented that we should consider issuing separate Lawson Employee ID’s for each entity because each entity has its own tax EIN.
Examples:
1. Person has terminated record under entity 1- Active employee with entity 2. Do a hire process with new ID vs. Rehire process into entity 2 under existing ID.
2. Person working at both entities - Active employment with entity 1 and
entity 2. Multlile work assignments under one employee ID or multiple employee ID's (hire process completed for entity 2 position).
When I uploaded the employees, I actually had employees that were termed from our facility and were active with the facility we are bringing into our system. Since we were looking to use only one employee ID, I did a rehire for these employees. There are a handful of employees that work at both entities, I was going to do a multiple position assignment and that’s where I was presented that this should not be a multiple position, rather it should be a second hire with another employee ID. There was also a concern of sharing same Lawson ID with the different entities because of union impact (we are union, other facility is not).
We did determine early in our process using the single employee ID, that if an employee terminates one entity and accepts a position with the other entity, that would be a term and rehire under the same employee ID with no historical dates or PTO to carryover. It definitely would not be a transfer.
So I wanted to check in with others to see how you handle employee set-up when there are multiple entities, each with it's own tax EIN.
One point I need to make...Payroll - Both entities are processed within the same biweekly payroll process.
So here are some concerns/questions that I am seeking information.
Considerations/questions for a person that is actively employed at both facilities with two employee ID's:
1. Taxes - IRS regulation impact
2. Benefits/Retirements Concerns/Questions - how do we handle the following:
- calculating retirement limits with two employee ID's
- FSA limits
- limiting benefit enrollment under each ID
- eligible or not for PTO calculation for each ID
If using one Lawson ID with multiple assignment structure:
1. Union impact - same Lawson ID considerations if one entity is union and the other is not a union; risk of position co-mingling between entities.
2. KRONOS - is it possible to accommodate more than one badge information
on a single employee record in KRONOS
These are some items that are in the forefront, please offer other items that we may not have considered.
Any information offered is appreciated.
[Updated on 11/11/2015 4:33 PM]
