Concurrent Employment
Concurrent employment refers to an employee working for multiple employers at the same time. Since each employer withholds taxes only on the income they pay, this may result in under-withholding and a potential tax bill at the end of the year.
How do employers handle employees with multiple jobs in concurrent employment situations?
Each employer processes payroll independently, without coordinating with other companies regarding taxes or benefits. Social Security, Medicare, and income tax withholdings are calculated solely based on the wages paid by that specific employer. To help prevent under-withholding, employees should be encouraged to update their W-4 forms to account for income earned from additional jobs.
Can an employee claim benefits from more than one employer under concurrent employment?
Employees with multiple jobs may qualify for benefits from each employer, depending on the organization's policies. However, employee benefits management can become complex, particularly with overlapping health insurance coverage. While duplicate benefits for the same service are not allowed, employees can coordinate plans by designating one as primary and another as secondary. Each employer evaluates eligibility based on the employee’s work schedule and hours worked.
What challenges do employers face when managing concurrent employment?
Employers may face scheduling conflicts, inaccurate tax withholding, and difficulty tracking overtime.
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