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Marketing & PR Agencies: Payroll Setup Guide (2026)
Setting up or managing payroll for marketing agencies involves more steps than the basic payroll guides cover. IRS 20-factor test for 1099 classification, state unemployment for remote workers, overtime exemptions for creative professionals applies on top of standard federal requirements.
This guide covers the specific payroll setup and management requirements for marketing agencies.
Step 1: Get Your Employer Accounts Set Up
Before running payroll for marketing agencies, you need an Employer Identification Number (EIN) from the IRS, a state employer withholding account in each state where you have employees, and a state unemployment insurance (SUTA) account. For marketing agencies operating in multiple states, this means separate registrations in each state.
Step 2: Configure Pay Types for Marketing Agencies
Marketing Agencies have non-standard pay types that require specific configuration: 1099 vs W-2 freelancer classification, project-based bonuses, multi-state remote teams, billable vs internal payroll allocation. Each of these must be set up as a separate pay code in your payroll system with the correct tax treatment applied.
Missing this step means your system calculates overtime incorrectly, applies the wrong withholding rate, or misses required reporting -- and you do not find out until you receive a penalty notice or employee complaint.
Step 3: Set Up Compliance Tracking
Marketing Agencies payroll compliance requires: IRS 20-factor test for 1099 classification, state unemployment for remote workers, overtime exemptions for creative professionals. Each of these has filing deadlines, rate requirements, or calculation rules that must be maintained current.
Set up a compliance calendar that tracks: tax deposit deadlines (semi-weekly or monthly based on your lookback period), quarterly Form 941 due dates, annual Form 940 due dates, state quarterly filings, and new hire reporting requirements.
Step 4: Run Payroll and File on Time
With accounts set up and pay types configured, run payroll on your selected frequency. For marketing agencies, bi-weekly or semi-monthly works for most salaried staff. 1099 vs W-2 freelancer classification may require different frequency or supplemental runs.
Tax deposits must be made on the IRS schedule -- either semi-weekly (if your lookback period tax liability exceeds $50,000) or monthly (if less than $50,000). Missing the deposit date triggers the IRS failure-to-deposit penalty.
The Faster Path: Managed Payroll for Marketing Agencies
BEG managed payroll handles all of the above for marketing agencies at $25-$45 PEPM, all-inclusive. Setup takes 3-5 business days. We configure your pay types, establish your tax accounts, and run your first payroll on schedule.
Managed Payroll, Handled.
BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
How do you handle freelancers vs. employees?
Freelancers classified as independent contractors are paid through a 1099 contractor system. W-2 employees go through payroll. We help review worker classifications to reduce audit risk.
Can you handle performance bonuses for account managers?
Yes. Performance bonuses are processed as supplemental pay runs with the correct federal supplemental withholding rate applied, included on the employee's W-2.
How do you handle remote employees across states?
Remote employees in multiple states are standard. We withhold state income tax based on each employee's state of residence and pay state unemployment where the employee works.
What does BEG charge for agency payroll?
Agency payroll runs at $25-$45 per employee per month. For a 20-person agency, that is $500-$900 per month covering payroll, tax filing, year-end W-2s, and multi-state compliance.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Marketing & PR Agencies. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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