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klm4mchr
January 20, 2024
Question

Using a Staffing Company

  • January 20, 2024
  • 2 replies
  • 0 views

We are a LLC S-Corp and use a staffing agency for our employee. We do not handle any payroll for the employee, we report hours weekly and the agency pays the employee. How do we classify, for tax purposes, payments to the staffing company? We also need to report any payroll to local counties, would this be considered paid employees or maybe subcontractor payments? Thank you in advance!

2 replies

D
droybal
June 26, 2024

They are not your employee so all payroll taxes and reports are paid and filed by the staffing company.  You will need to get a W-9 form from the staffing company and if applicable based on the W-9 form,  may be eligible for a 1099 at year end. All payments to the staffing company should hit an expense account such as professional fees.

M
MelroseV
June 26, 2024

I can help you classify your company staffing in QuickBooks Desktop payroll, @klm4mchr.

 

To properly handle your staffing company's tax processes, I recommend contacting your tax agency and tax expert. This way, they can help you with an accurate classification for your taxes.

 

You can also refer to the information given by droybal on how payroll taxes should be handled.

 

Additionally, you can generate payroll reports to gain a more detailed insight into your business's financial status. For more information, please refer to this article: Run payroll reports.

 

Should you have additional concerns related to payroll, feel free to post them here in the Community space.

 

 

 

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