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Your PEO is making the W-2 available to the companies you did work for? That's weird. I can't think of a reason why that would be necessary at all... the W-2 is between you, company who is paying you (your PEO), and the IRS.

I would clarify their policy around this, and perhaps ask the IRS what the rules around W-2 disclosures are.

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Correct, both companies can see the same combined income W-2 within the PEO's site.

Who is the PEO? Some PEOs have very stringet legal teams that would make a big fuss about this. Depending who your PEO is, you might just reach out directly to their legal department.

Source: I worked for a large PEO.

And if you can't get this fixed, you might consider changing to a different one.

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