"J Craig Stone" <jcstone1[at]comcast.net> wrote:

- quote -

It's not uncommon for owners of more than one business to
handle all the payroll in one businss, then bill the other
company(s) for payroll expenses. This not only eliminates
excess FICA, it avoids filing multiple payroll reports.

Mike Lewis, CPA

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"J Craig Stone" <jcstone1[at]comcast.net> wrote:

- quote -

Depending on the state, it may not matter. Your state needs
to allow what's known as a common paymaster. Most don't.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

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J Craig Stone wrote:

- quote -

Simple. The second corporation has in effect leased your
services, so it should reimburse the paying corporation a
reasonable amount. Best to document same, however with
something written, just in case.

The bonus is you saved paperwork for the second corporation
and higher state unemployment taxes perhaps; depending on
the rate for corp # 1.

Cheer$,
Harlan Lunsford, EA in LA

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I have two S Corps. I draw a salary out of one (with
appropriate w/h and all payroll taxes). I would like to
allocate a portion of the salary to the other corporation (I
don't want to duplicate FICA payments by having each corp
declare and pay their own salary). How do you show this on
the tax return for both corps.

Thanks,

Craig Stone

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