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Level 1

How do I enter a portion of salary reimbursement between companies?

I have several companies and Company 1 pays the salary but 3 other companies reimburse Company 1 for a portion of that salary and health insurance.

 

My question is, because the amount is listed as payroll and health insurance in Company 1, what type of expense do I enter the salary and health insurance in Company 2, 3, and 4?

 

Do I just call it consulting? Is there a better expense?

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Level 3

Re: How do I enter a portion of salary reimbursement between companies?

Hi Amuseme1 -

There are several possible answers to your question that depend on what you are trying to do here.  What is purpose & relationship between the multiple companies and for wanting to allocate cost?  Does one do work for another?  Assume you are the sole-owner of all 4 companies?  LLC's or ?

Level 1

Re: How do I enter a portion of salary reimbursement between companies?

The person works for Company 1 as the main employer and then does work  for company 2, 3, and 4.  Since the payroll is accounted for in Company 1, I don't want to show it as payroll in company 2, 3 or 4 so I figured Consulting would be best? Company 2 pays Company 1 50% of the salary, Company 3 10%, and Company 4 10%. 

 

The companies are LLCs. They are in related fields and have common partners, therefore if money needs to be loaned or borrowed, we essentially move from one to another. In this instance, the person's payroll is reimbursed 

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