-
corporate loan-out employee forced onto payroll?
Hi,
I have a dilemma and I’m wondering if any other colorists have run into this as we are pretty solidly self-employed service providers with multiple clients, providing our own gear and training.
I have a client who has switched payroll companies and is asking me to get signed up as a corporate loan out, where I am an employee of my corporation but I myself am forced to go onto their payroll as a regular employee. I have an LLC with a tax id, and I have never run into this. I did some research, and it seems that as a corporate loan out, my rate of pay and taxes, etc would be determined by the entity employing me, namely my corporation. I am not familiar with the tactic of forcing an LLC onto payroll.
Naturally this is hugely disadvantageous to me, and I’m not sure how to proceed.
by the way, I work for an average of 5-8 clients a month, and maintain two offices, one in manhattan and one in Brooklyn. When I work on site for a client, which I do about half the time, I come with my own control surface, look library, etc.
-
1 Reply
-
Hi Sean,
We’ve had this request before from larger companies that for whatever reason find it easier to add an employee to the payroll than to write checks to an outside vendor. In our cases, often the producers have to get any vendor onto an approved vendor list, which can be difficult or slow.
In all our cases, we explain that we can’t do that and they have been able to work with us as a vendor. It’s possible some folks hiring will be more or less hamstringed, but you’re probably correct in thinking being on payroll doesn’t accurately reflect the way in which you and your company are operating.
Cheers,
KC
Reply to this Discussion! Login or Sign Up