Payroll company listed as EMPLOYER on W2??? - Sorry about rant

Ok, I'm being careful here because I'm not sure what companies names' we can/cannot post so here we go:

I've been working for the same company (let's call it company TYPE A for now) for approximately 6-7 yrs as an IC. When I got my 1099's, the company's name TYPE A was always listed. As of January 2011, I became an employee and started recieving my checks via a payroll company, let's call them PAYROLL A.  

I got my W2 (online) the other day. When I looked at it, it shows PAYROLL A as my employer, with no mention of the company TYPE A anywhere on the form.  I have never received any paperwork stating I was employed by anyone other than TYPE A.

I have also worked for other companies that used this same payroll company, and those W2's always listed the actual company as my employer, not the payroll company.

I contacted HR. In the first email reply, they stated that's the way it is on everyone's W2 and has always been that way. When I questioned it further (I've been audited in the past, so I'm extra careful now), HR tells me PAYROLL A files my taxes using their FEIN number, therefore as the employer of record, the employer is PAYROLL A.

So I did a bit of Googling and found out PAYROLL A has gotten into the business of being a PEO. As per the great and powerful Wikipedia: 

A professional employer organization (PEO) is a single source provider of integrated services which enable business owners to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation and other strategic services, such as recruiting, risk/safety management, and training and development.It does this by hiring a client company’s employees, thus becoming their employer of record for tax purposes and insurance purposes. This practice is known as co-employment.

For some reason, this has rubbed me the wrong way. This seems like legal loophole for the company to pay LESS taxes, cut administrative costs, and have more profit....while asking (more like demanding) ME to take a PAY CUT. And this on top of the fact that TYPE A used to be an American company, but is now 90% run, operated, and owned in the Phillipines. 

I used to be proud of my company. Not so much anymore, especially within the last 2-3 years.