Concurrent employment by related corporations
Sec. 3. (a) If two (2) or more related corporations concurrently
employ the same individual and compensate that individual through
a common paymaster that is one (1) of the corporations, those
corporations shall be considered to be one (1) employing unit.
(b) For purposes of this section, corporations shall be considered
related corporations if they satisfy any one (1) of the following tests
at any time during the calendar quarter:
(1) The corporations are members of a "controlled group of
corporations", as defined in Section 1563 of the Internal
Revenue Code (generally parent-subsidiary or brother-sister
controlled groups), or would be members if Section 1563(a)(4)
and 1563(b) of the Internal Revenue Code did not apply and if
the phrase "more than fifty percent (50%)" were substituted for
the phrase "at least eighty percent (80%)" wherever it appears
in Section 1563(a) of the Internal Revenue Code.
(2) In the case of a corporation that does not issue stock, either
fifty percent (50%) or more of the members of one (1)
corporation's board of directors (or other governing body) are
members of the other corporation's board of directors (or other
governing body), or the holders of fifty percent (50%) or more
of the voting power to select such members are concurrently the
holders of fifty percent (50%) or more of that power with
respect to the other corporation.
(3) Fifty percent (50%) or more of one (1) corporation's officers
are concurrently officers of the other corporation.
(4) Thirty percent (30%) or more of one (1) corporation's
employees are concurrently employees of the other corporation.
Corporations shall be considered related corporations for an entire
calendar quarter if they satisfy the requirements of this subsection at
any time during the calendar quarter.
(c) For purposes of this section, "concurrent employment" means
the contemporaneous existence of an employment relationship
between an individual and two (2) or more corporations.
As added by P.L.128-1984, SEC.1. Amended by P.L.2-1987, SEC.29.
Last modified: May 27, 2006