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Ask HN: Can a PEO rightfully expose your income to other employers?
In 2019 I worked for two companies that made use of the same professional employer organization (PEO). This PEO generated a single W-2 for 2019, combining my income from the two companies. Both companies can view this combined income W-2. Simple W-2 less payroll math would reveal to each company what the other paid.
This doesn't sit well with me for myriad reasons, and I can't imagine this is entirely legal. While the PEO reps are empathetic in correspondence on this issue, no resolution/progress on the matter has been made whatsoever over the last few weeks. Any advice/counsel is appreciated.
- JohnFen 7y agoYour PEO is making the W-2 available to the companies you did work for? That's weird. I can't think of a reason why that would be necessary at all... the W-2 is between you, company who is paying you (your PEO), and the IRS. I would clarify their policy around this, and perhaps ask the IRS what the rules around W-2 disclosures are.
- amevo 7y agoCorrect, both companies can see the same combined income W-2 within the PEO's site.
- edcastano 7y agoWho is the PEO? Some PEOs have very stringet legal teams that would make a big fuss about this. Depending who your PEO is, you might just reach out directly to their legal department. Source: I worked for a large PEO.
- JohnFen 7y agoAnd if you can't get this fixed, you might consider changing to a different one.
- edcastano 7y agoWho is the PEO?
- skinnymuch 7y agoPost says in the first sentence
- lonelappde 7y agoNo it doesn't.
- bzax 7y agoThe post answers "what is a PEO", but not "what is your PEO". The second is what's meant by "who is the PEO?"
- TechBro8615 7y agoOn the bright side, if both companies are large, it's unlikely your manager at either will ever notice.
- toomuchtodo 7y agoCheck with an attorney (a consult is usually no cost) if "26 U.S. Code § 7213.Unauthorized disclosure of information" [1] or "26 U.S. Code § 6103.Confidentiality and disclosure of returns and return information" [2] applies to this situation. If applicable, your attorney may consider contacting the PEO's legal department to inform them of their violation of federal statute. [1] https://www.law.cornell.edu/uscode/text/26/7213 https://www.law.cornell.edu/uscode/text/26/7213 [2] https://www.law.cornell.edu/uscode/text/26/6103 https://www.law.cornell.edu/uscode/text/26/6103
- amevo 7y agoThank you. Which kind of attorney would handle this: data privacy, tax, consumer protection, something else?
- snapetom 7y agoIf I was in your position, I would start with a labor attorney. First off, there are plenty of them. Second, they specialize in the employee/employer relationship. Privacy is one very common aspect of this relationship. If they are not able to help, they should at least point you in the right direction.
- lotsofpulp 7y agoMany companies provide employee pay data to equifax, and equifax sells it to many people: https://www.fastcompany.com/40508924/equifax-could-be-selling-your-salary-history-heres-how-to-protect-it https://www.fastcompany.com/40508924/equifax-could-be-sellin...
- lonelappde 7y agoNote: the Work Number is effectively a collusion of employers against labor, an employer's "union" of sorts . Much lie the one where "competing" employers agreed not to recruit from each other to avoid bidding eats. Remember that next time your employer tells you you don't need a union.
- icedchai 7y agoYour pay comes from the PEO, on "behalf" of the employer, right? Technically you "work for" the PEO, so this sounds fine to combine them. I bet they can't even do anything about it.
- kelnos 7y agoIn that case, it's concerning that the PEO is sharing the W-2 with the companies the OP did work for. If the OP doesn't have an employment relationship with these companies, it seems like a huge privacy breach for the PEO to be sharing W-2s with these companies at all.
- deleted 7y ago[deleted]
- chrisgoman 7y agoNo, this is not right. The PEO is paying you "on behalf of" a specific employer (even if your check is coming out of the PEO's account). So you should get 2 W2s with separate amounts from each employer. TriNet (a large PEO) stores employees as SSN so if you have ever worked for a company that used TriNet as their PEO, you are in their system. As an employee, you should see a dropdown at the top and you can only see ONE employer at a time and you have to use the dropdown to switch around. The only reason you can get ONE W-2 is if you work at a temp agency. The employer technically pays the temp agency and the temp agency pays you. So even if you got billed out to 10 different "employers", you are still an employee of the temp agency and you get ONE W-2 but technically, this is NOT a PEO situation
- godzillabrennus 7y agoMy understanding is exactly the opposite. If you do work for a client of a PEO it is as an employee of the PEO. Therefore you would only get one W2 from the work you did.
- compsciphd 7y agothat's what he said, if you are an employee of a contractor who contracts you out to different companies, you are an emplyee of only one company.
- amevo 7y agoNo temp agency. I was an employee of two separate and unrelated companies.
- chrisgoman 7y agoOn your employment records, you should have 2 hire dates which means that they HAVE TO KNOW that you were hired at separate times by 2 separate companies. Think of it this way: if you have vesting stock, the 2nd company will NOT count the time you were with the 1st company (that would be excellent but it obviously doesn't work this way)
- 7y ago