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If an employee of an employment agency is considered to be a joint employee of both the employment agency and the client company

Los Angeles, CA |

If an employee of an employment agency is considered to be a joint employee of both the employment agency and the client company, are both the employment agency and the client company required to pay employment taxes to the IRS for the "employee" hired??

Attorney Answers 3


  1. Best answer

    Under California law either or both companies could be "your employer" depending on nature of a claim you might be asserting. For taxes and withholding, it's normally the employment agency, not the client, who is paying employment taxes and benefit premiums, as said above. Clearly, both won't be paying, so the contractual relationship between the two will specify who the payrolled employee belongs to for tax and premium purposes. Attorneys will often name both companies in a claim to prevent one or the other from slipping off the hook if no company admits to being the accountible employer.

    THIS IS A GENERAL ANSWER TO A GENERAL QUESTION AND SHOULD NOT BE RELIED UPON AS A FULL LEGAL ANALYSIS OF ANY FACTUAL MATTER. An attorney-client relationship is not established or offered solely as a result of this answer.


  2. It depends what you are really asking. The employer could be one or the other entity for some purposes and a joint employer for other purposes.

    If you are asking who collects the employee's withholding and deposits the withholding to the IRS, then it is the entity that issues the paychecks. If this isn't what you want to know, then we need more detail to answer the question.

    twitter.com/MikaSpencer *** All legal actions have time limits, called statutes of limitation. If you miss the deadline for filing your claim, you will lose the opportunity to pursue your case. Please consult with an experienced employment attorney as soon as possible to better preserve your rights. *** Marilynn Mika Spencer provides information on Avvo as a service to the public, primarily when general information may be of assistance. Avvo is not an appropriate forum for an in-depth response or a detailed analysis. These comments are for information only and should not be considered legal advice. Legal advice must pertain to specific, detailed facts. No attorney-client relationship is created based on this information exchange. *** Marilynn Mika Spencer is licensed to practice law before all state and federal courts in California, and can appear before administrative agencies throughout the country. She is eligible to represent clients in other states on a pro hac vice basis. ***


  3. Employment agencies customarily hire and pay employees for temp positions. The employee is on their payroll because the agency normally takes a fee from the employer/company.

    Whoever issues the paycheck - is the employer, and it is unlikely that the both are doing this.

    This is my opinion and should not be construed as legal advise for your specific case as there are many more facts which you have not provided.