In short

Agency payroll covers salaried creatives and account staff, hourly juniors, bonuses tied to client results and remote employees in several states. The work includes exempt status reviews, multi-state withholding registration, federal deposits, quarterly Form 941 filings, W-2s, and keeping freelancers outside payroll while making sure they are properly classified.

Exempt or non-exempt creatives

Creative professionals may qualify for an overtime exemption if they meet the duties and salary tests under the Fair Labor Standards Act; junior coordinators and production assistants often do not. We review each role before setting pay.

Remote employees

Each state where an employee works can require withholding registration and state unemployment accounts. We keep a register of employee work locations and set up state withholding accordingly.

Freelancers and classification

Long-term freelancers working set hours under your direction can look like employees. The IRS factors on its independent contractor or employee page help decide; we flag relationships that need a closer look.

Bonuses and commissions

Bonuses for client wins or retention are supplemental wages; Publication 15 explains withholding methods for supplemental pay.

Filings

Deposits, Form 941 and W-2s are reconciled, and payroll is posted by department or client team so labor cost lines up with net revenue.

Before we start

Agencies often blend salaried staff, hourly coordinators and freelancers. We review each role's classification, confirm exempt status meets the duties and salary tests, and set up contractor onboarding with W-9 collection so year-end 1099s are straightforward. Remote employees in other states are registered for withholding where they work.

We also confirm that bonuses tied to client results are included in overtime calculations for nonexempt staff where required.

Key terms

Definitions for terms used on this page:

  • Exempt and Non-Exempt Employees: Non-exempt employees must receive overtime under federal law; exempt employees meet specific tests that remove that requirement.

Marketing & Creative Agencies problems this addresses

  • Client ad spend passes through the books and inflates revenue
  • Retainers are billed in advance for work done over the month
  • Freelancers and contractors are a large and variable cost
  • Project overruns are hard to see without time and cost tracking
  • Software subscriptions multiply quickly across clients and staff