01-10-2013, 02:52 PM
When a company outsources HR functions to a employer organization like TriNet, the HR company in the coemployer agreement actually is your employer of record. The employer of record is responsible for payroll and payroll tax compliance, benefits administration, workers compensation, processing unemployment claims, and other HR-related administrative tasks. Your company Y remains the worksite employer and continues to retain day-to-day control and direction of the worksite employees. Since TriNet is your employer of record and manages your benefits, I can understand the IRS position. Unfortunately I don't know how to work around it