§ 22-4-6-3 — Concurrent employment by related corporations

(a) If two (2) or more related entities, including
partnerships, limited liability partnerships, associations, trusts, joint
ventures, estates, joint stock companies, limited liability companies,
insurance companies, or corporations, or a combination of these
entities, concurrently employ the same individual and compensate that
individual through a common paymaster that is one (1) of the entities,
those entities shall be considered to be one (1) employing unit.
(b) For purposes of this section, entities shall be considered related
entities 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 an entity that does not issue stock, either fifty
percent (50%) or more of the members of one (1) entity's board of
directors (or other governing body) are members of the other
entity's board of directors (or other governing body), or the
holders of fifty percent (50%) or more of the voting power to
select these members are concurrently the holders of fifty percent
(50%) or more of that power with respect to the other entity.
(3) Fifty percent (50%) or more of one (1) entity's officers are
concurrently officers of the other entity.
(4) Thirty percent (30%) or more of one (1) entity's employees are
concurrently employees of the other entity.
(5) The entities are part of an affiliated group, as defined in
Section 1504 of the Internal Revenue Code, except that the
ownership percentage in Section 1504(a)(2) of the Internal
Revenue Code shall be determined using fifty percent (50%)
instead of eighty percent (80%).
Entities shall be considered related entities 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 entities.

Legislative History

As added by P.L.128-1984, SEC.1. Amended by P.L.2-1987, SEC.29; P.L.175-2009, SEC.6.