Accounting, Payroll & Pension Issues/RE: Pay Agent Reporting

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Question
Hi Shirley,

I would like to know if its possible as a pay agent for several legal enitities using the same parent EIN with multiple payroll services can you file, report and make payments to federal, state and local agenices. Also, will the agencies accept multiple returns and accumulate monthly/qtrly/ytds.

Answer
Your question is confusing. "several legal entities" and "using the same EIN" is not, I do not believe, possible.

Each legal entity probably needs its own EIN as each EIN = a separate income tax return and a separate set of payroll tax returns.

If several entities are co-owned or subsidiaries, then each needs its own EIN and then there are federal tax rules or combine related entities.

The federal and state agencies will not as far as I know combine amounts reported on several payroll tax returns.  

Accounting, Payroll & Pension Issues

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Arthur Naman

Expertise

General accounting and bookkeeping questions. Specific questions pertaining to: monthly bookkeeping, preparing financial reports; reconciling accounts.

I cannot answer questions pertaining to pension or retirement planning.

This is not a forum to have homework answered. Please do your own homework.

Experience

30 years' experience doing tax and accounting work

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MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA

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