Question

Single Paymaster - Multi-company

  • 21 January 2022
  • 2 replies
  • 30 views

Userlevel 3
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We have a client who is managing multiple companies in a single tenant.  For the purposes of payroll tax reporting, all employees are employed by one company, but their expenses are to be allocated to the companies for which their work is being performed.  

Put another way - let’s assume that all 40 employees are legally employed by Company A.  All benefits, workers’ comp and taxes are paid under Company A’s umbrella.  Let’s further assume that 10 of these employees’ work is dedicated to Company B.  The client would like to report his payroll to the various tax agencies under Company A, but they want the associated expense for these employees to go to Company B.  

With that scenario in mind, to which Branch/Company should the employee be assigned?  How does the Employee’s branch/company assignment impact Payroll Tax reporting?  Does Aatrix look at the EIN of the branch that the employee is assigned to, or by EIN of the company from which the employee is paid, if different from the employee’s home branch?  

If we assign the employee to the paymaster’s branch, but then override his/her branch in the payroll batch, what impact, if any, does this have on how Aatrix deals Payroll tax reporting?


2 replies

Userlevel 1

@plmainard - in Acumatica you have the ability to chose which way taxes are reported. If you want all taxes to be reported by company A there is a setting on the company when you set them up. 

Userlevel 3
Badge +1

Hi Shannon,

Thanks for your response.  I understand that this is a possibility, but your answer doesn’t take into account the client’s actual configuration.  

The payroll set-up assumes that the stand-alone companies are configured as “branches” under the company.  In our client’s case, the other companies are set-up as Companies and not Branches under the paymaster.  We did this because of the 1099 reporting requirements mentioned above, and the fact that the company acting as a paymaster has two non-balancing branches or “divisions” (operating in two different states), so we felt the need to segregate them from the other companies.  

So, in light of this, what are your thoughts on what’s driving the payroll tax reporting?

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