Company A has an hourly employee. Now the same owner has started a new company B (with separate entity, EIN, payroll, workers compensation, etc..) in the same state and would like the employee to also work there with the same hourly wage. The employee will get two separate paychecks, one from each company. The two companies will work such that there will be no time overlap or additional hours per week which means employee will have the same weekly hours irrespective of whether they work at only A or at A & B.
But the employee is balking at this saying that they will have additional tax overhead or reporting or some such. Are they right? Owner does not think so because its just the same hours paid all by one company (A) or shared by two companies (A - B + B).
How can owner explain to make employee see that there will be no loss to them with this arrangement?
Or should owner let employee have their way and only work at company A?
Employee says they will work hours at company B but that owner should make the paycheck for those hours come from company A. This could be a problem because company B will not have any payroll expenses to show for its bookkeeping, only revenues and so suffer higher taxes on profits. How does owner deal with this issue?