The Employee Master Record Number allows an individual, identified by Social Security Number, to be hired as a different employee who has a different W-2 type or a different Company Code assignment.
Social Security Number Field and Master Record Number Field
The Employee Master screen and employee Time Master screen have a field called Employee Master Record Number. This field to the right of the Social Security Number field lacks a label, but has tip text. The Employee New Hire process automatically populates this field with a "1."
Changing the Employee Master Record Number allows the same individual to be hired with different W-2 types or Company Codes and the same Social Security Number in the system, which allows the same person to be "multiple employees" when this is required for compliance purposes.
Employee Becomes an Independent Contractor: To use this feature for situations where an employee becomes an independent contractor or is hired by an associated Company, your organization can handle the transition by editing the Master, putting a 2 in the Employee Master Record Number field, and hiring the new contractor into the company. The same procedure applies when an employee or independent contractor is hired to do work for another Company in your system.
Vice Versa: Where an employee becomes an independent contractor, your organization can handle the transition by editing the Employee Master, putting a 2 in the Employee Master Record Number field and hiring the new contractor into the company. This keeps the individual’s wages properly assigned for year-end reporting with a W-2 and a 1099-MISC.
Where an employee or independent contractor is hired to work for another Company in your the same system, first, edit the Employee Master, putting a 2 in the Employee Master Record Number field, and then hire the employee/contractor into the other Company through the New Hire Wizard. This keeps the individual’s wages properly assigned for year-end tax reporting, according to the assigned W-2 types.