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When Employees Change Companies (Company A to Company B)

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Posted on by RedStorm

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Do you (or your clients) have a multi-company environment? (Company A, B, C, etc.) What do you do (or suggest) when you have an employee moving/re-assigned from Company A to Company B?

**Do you create a new employee ID?**

**How do you handle W-2's?**

Is there any way to maintain the same employee ID and change companies (or is that simply not an option)? (I don't think even "Key Change" has a solution for this.)

I'm looking for any insight that folks may have to offer on this situation. Thanks! Dave

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Toni Savage 260 on at

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Re: When Employees Change Companies (Company A to Company B)

If it is a different legal entity, then the employee should, of course, get 2 W-2s. I would, in this case, create another employee ID.

Things like the unemployment/disability limits have to start at zero again, if it is a different legal entity with its own TIN.

If it's just a case of a subsidiary, and company b is paying under the same TIN, then I would not think anything has to be fixed... SL should combine the W2 info like it does for 1099s (but I've never tested that....)

Best to set up a test environment, and see what the effects are.

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