Payroll Brass Tax: Payroll Consolidations and Strategies for Multi-Entity Employers

In this installment of our Payroll Brass Tax podcast series, Mike Mahoney (Morristown/New York) and Megan Menguc (Washington) break down the most common strategies for consolidating payroll across related entities. Megan and Mike, who is chair of the firm’s Employment Tax practice group, walk through three distinct approaches, examining the practical benefits and limitations of each: (1) captive employee leasing, (2) Section 3504 agent reporting, and (3) common paymaster arrangements. The speakers also address the broader cross-disciplinary considerations that employers should keep in mind before restructuring how payroll is reported.