Payroll Company Changes and I-9 Status

by Prestin
(Pembroke Pines, FL, US)

I have been working for a company for two years. The company was outsourcing its payroll, but now they are doing it in-house. When the payroll company changes, will there be a change in my first day of employment as needed on the new I-9?

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I-9 Should Be Fine
by: Best Business Payroll

Because you are still employed by the same company, your first day of employment is still the first true day of employment, and should not affect your I-9. If you need to do something else with your I-9 your employer should be telling you, and all the other employees who will be similarly affected.

If your company was outsourcing before and now they are in-house, their Federal ID number will remain the same, and there will be no change in date of first employment. You haven't changed employers, your company just changed their payroll method.

However, there is something called a PEO (Professional Employer Organization)who also provide outsourced payroll, and if your company used a PEO the Federal ID number you are working under will change. The difference between a PEO and traditional outsourcing is that, for tax purposes, employees of a company technically become employees of the PEO. This enables PEO's to provide their own health insurance and their own Worker's Comp Insurance to their client companies at a lower rate than the company could do by themselves because of the increased buying power of the PEO.

But even in this case, nothing should need to be done to the I-9. If you have any questions, you should always check with your company's payroll department for clarification.

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