When an employer utilizes a common paymaster agreement:

Comprehensive and Detailed in-Depth Explanation:

Acommon paymasterallowsrelated corporationsto treat one entity as the employer for FICA purposes. Thus, employees working for multiple related corporations are taxedas if employed by a single employer, avoiding duplicate FICA tax.

Applies only to FICA,not FUTA.

Helps avoid exceeding wage base multiple times.