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TTR1
Level 1

Can I split employee wages and payroll taxes between two companies?

I am the majority owner of two locations. Each location has different minority owners. Both locations use the same employees and each location will be responsible for their respective percentage of payroll and taxes.  I have a payroll LLC that will employ the workers so they can keep full time status working for one entity. The payroll LLC needs to invoice each location for their share of the employee wages and payroll taxes. Is there a way for my payroll LLC to accept employee hours from two locations and issue one direct deposit to employees on pay day?

3 Comments 3
GebelAlainaM
QuickBooks Team

Can I split employee wages and payroll taxes between two companies?

I appreciate you sharing this with us here in the Community, @TTR1. It's my pleasure to provide you with the information to clarify your concern about splitting wages and payroll taxes between two companies.

 

In your case, you can't split the wages and payroll taxes between two companies in QuickBooks Online (QBO). 

 

You'll need to create separate paychecks and direct deposits per location. I'll be glad to show you how.

 

Once you've set up and added a payroll schedule for your employees, you can create your paychecks and send your payroll with each location to your employees.

 

Here's how:

 

  1. Access your Payroll menu, then go to Employees.
  2. Click Run payroll.
  3. Pick your desired payroll schedule and click Continue.
  4. Review the QuickBooks Bank account to track your payroll, the Pay period, and the Pay date.
  5. Select the employee you'd like to pay.
  6. Enter hours, compensation, memos, or any other necessary paycheck info. Also, you can select Review Approved Time if you use QuickBooks Time. 
  7. Hit Preview Payroll, then Submit payroll.
  8. Then, select Finish payroll.

 

Please refer to this article for the process: Create and run your payroll.

 

Furthermore, you can pay your employees with direct deposit into their checking, savings, or money market accounts. Here's an article to set this up: Set up direct deposit for employees.

 

I've also added the following articles for future reference:

 

 

Please keep me updated about this matter or if you have any other payroll or taxes concern. I'd be glad to assist you. Take care always! 

TTR1
Level 1

Can I split employee wages and payroll taxes between two companies?

SirielJeaB
Moderator

Can I split employee wages and payroll taxes between two companies?

I appreciate you for responding, @TTR1. Thank you for your query and the relevant article. These are some details you may use to refer to this article.

 

This reference is about tracking the time of your employees who work at several locations. It is only applicable to QuickBooks Online Advanced Payroll in the United Kingdom.

 

Review the payroll tax table update, exact rates and calculations for federal and supported state taxes, payroll tax forms, and e-file and e-pay options by clicking on this link.

 

We're available 24/7. Simply click the Reply button below or post in the Community again if there is anything else you need to clarify. Have a nice day!

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