Comprehensive and Detailed in-Depth Explanation:
A common paymaster allows related corporations to treat one entity as the employer for FICA purposes. Thus, employees working for multiple related corporations are taxed as if employed by a single employer , avoiding duplicate FICA tax.
Applies only to FICA, not FUTA .
Helps avoid exceeding wage base multiple times.
[References:, IRS Regulation §31.3121(s)-1, The Payroll Source, Chapter 4: Multi-State and Multi-Entity Employment, ]
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