Co-Employment Agreement

by on September 14, 2021

The same applies where the company has already paid the tax money to the EEA as part of the service contract. And if a company joins or leaves a co-employment agreement in the middle of the year, it may be subject to a restart of the wage base of certain payroll taxes. The most frequent cases of violation of labor law – for example, when a hired employee is miscategorized and his taxes are not properly withheld. However, common sanctions are also provided for collective employment agreements where the PEO is not the documented employer. In the absence of a clear and written definition of the employer, it is easier for client organizations to enter into procedures and practices that are effectively the responsibility of the PEO and vice versa.

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