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civilengineeracct
September 19, 2022
Question

LLC owned by 3 individual S-Corporations - How to handle payroll and benefits

  • September 19, 2022
  • 1 reply
  • 0 views

Hello,

We are 3 individual owners of S-corporations and we came together and all own 1/3 of an LLC.  Our LLC just hired it's first employee, hooray!  We are using Quickbooks Payroll for this employee.  We are working now on setting up benefits (health, dental, 401k).

 

I would like to know the recommended setup for payroll and benefits.  I would prefer to use Quickbooks Payroll if possible. Right now, us 3 individual owners are getting money transferred from the LLC to our S-Corporation every month.  The S-Corporation runs payroll on it's own (I have an excel spreadsheet to keep track).  We are paying for our own health insurance.

 

Would it be possible to add the 3 S-Corporation Owners as "employees" and administer benefits through Quickbooks Payroll? 

 

Any help on this matter is much appreciated!

Thank you

    1 reply

    MichelleBh
    MichelleBh
    September 19, 2022

    Congratulations, @civilengineeracct, for employing your LLC's first employee. That makes us delighted to hear.

     

    I'll be glad to provide more information to manage your s-corporations in QuickBooks Online Payroll (QBOP). As a result, you can precisely supervise your account.

     

    Yes, you can add the 3 S-Corporation Owners as "employees" and administer benefits through QBOP. To achieve this, follow this process:

     

    1. Go to the Payroll menu and select Employees. 
    2. Choose the Add an employee button. 
    3. Fill up the required information and click Save.
    4. Double-click the employee name, go to the Pay types section, and hit Start.
    5. In Additional pay types, select S-corp Owners Health Insurance.
    6. Enter the amount (optional) and click Save. 
    7. Repeat the steps for the remaining owners.  

     

    See this link for more information: Set up an S-corp medical payroll item for your corporate officers.

     

    Once you're ready, you can create and send a scheduled/unscheduled payroll. 

     

    I'll also include helpful information on getting started and setting up payroll. As a result, you can complete the setup as fast as possible:

     

     

    On top of that, I'd still suggest consulting an accountant if that's how those individuals should be set up.

     

    Moreover, feel free to bookmark these articles below on how to add, hide, or remove pay types, run payroll reports, and other related matters: 

     

     

    Send me a message if you're experiencing trouble organizing your payroll, especially as an S-corp. I'd be happy to share my counsel with you and be there for you every step of the way. I wish your company more successful.

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