Where Employer A makes a reportable payment that is reimbursed by Employer B, who files the Form LM-10?
A56. Employer B must file the Form LM-10. Generally speaking, the employer that makes the final payment without reimbursement from another employer should report the transaction. If, however, the reimbursement is from a person or company that is not an employer, the employer making the payment must file a Form LM-10, but may note the fact of reimbursement on the form. For example, a service provider to a pension and welfare plan hires a marketing firm to generate new business for the service provider. The marketing firm makes a covered payment to a union official. If the marketing firm is an employer, it must report the payment. If the service provider is an employer and reimburses the marketing firm, only the service provider must file the report. If the service provider is not an employer, however, the marketing firm must report the payment.
Related Questions
- Under what circumstances would a payment to a charitable event run by a union be reportable on Form LM-10?
- Where Employer A makes a reportable payment that is reimbursed by Employer B, who files the Form LM-10?
- Where multiple employers pay a portion of a single reportable payment, who files the Form LM-10?
