N.J. Admin. Code § 12:16-12.2

Current through Register Vol. 56, No. 11, June 3, 2024

Section 12:16-12.2 - Common paymaster

(a) If two or more related entities concurrently employ the same individual and compensate that individual through a common paymaster that is one of the related entities, each entity will be considered to have paid the individual the amounts that it actually dispersed.

(b) If one of the related entities actually dispersed all the wages as agent for the rest, but such wage payments were charged back to the individual entities for record keeping, income tax or other purposes, the individual related entities shall be considered to be the employer for purposes of the Unemployment Compensation and the Temporary Disability Benefits Laws.

(c) A single entity can report the wages of related companies if all the following conditions are satisfied.

1. The reporting entity has a majority interest and control over the related companies;

2. The related entities share a general system of operation and each entity is organized for a common purpose or each is a coordinated part of the entire operation; and

3. The reporting entity exercises control of central financing, common management, personnel policies, operational procedures, pricing, collections and other related operating practices.

(d) A single entity electing to report wages of any related entities must inform the Division of Employer Accounts of its intent to report related entities. Notification thereof must be received by the Division at least 30 days prior to the effective quarter in which the common reporting is to commence. All entities reported in common must be identified, including employer identification numbers, legal and trade names, business locations and the type of activity conducted by each entity.

(e) A single entity electing to report wages of related entities, must report all the employees of the related entities and reporting cannot be limited to classifications or categories of workers.

(f) A single entity electing to report wages of related entities, will result in the employment experience of the related entities being merged into the reporting entity's experience rating in order to determine an aggregate employment experience rating.

(g) In the event that a single entity elects to report wages and pay contributions of related entities, each related entity will remain jointly and severally liable for its share of the contributions.

N.J. Admin. Code § 12:16-12.2

Amended by R.2003 d.105, effective 3/3/2003.
See: 34 New Jersey Register 4019(a), 35 New Jersey Register 1274(b).
Added (c) through (g).