In short

Payroll in real estate covers on-site property managers, maintenance staff and leasing agents, often shared across several properties or entities, as well as agents who may be paid on commission. The work is allocating wages and employer costs to the right property or entity, handling commission pay correctly, recording any housing provided to staff, and classifying maintenance workers as employees or contractors.

Real estate businesses usually have small teams spread thinly: a property manager who looks after three buildings, a maintenance technician shared across a portfolio, a leasing agent paid partly on commission. Payroll has to pay them correctly and put their cost against the right property.

Allocating wages across properties

When one person works across several properties, or several LLCs, their wages and employer taxes need allocating. We agree a method with you, such as hours, units or a fixed split, and post the payroll journal accordingly. Entity-level books stay accurate, and each property's operating costs include its share of staff.

Commission and bonus pay

Leasing and sales staff are often paid commissions on signed leases or closed deals. We set up the commission calculation with you, run it through payroll with the regular pay, and record it in the right period.

Maintenance staff and contractors

Many owners use a mix of employed maintenance staff and outside contractors. The IRS explains how to tell them apart in its guidance on independent contractors versus employees. Contractors should provide a Form W-9, and we track their payment totals for year-end forms.

Employment taxes

Employers withhold income tax and Social Security and Medicare taxes and pay their own share. The IRS overview of employment taxes summarises the main obligations. We keep deposits and quarterly returns reconciled to the payroll register.

Staff housing

Some on-site managers receive a unit as part of their role. The tax treatment depends on the arrangement, so we record it clearly and raise it with your preparer rather than guessing.

What we look after

  • Pay runs for managers, maintenance and leasing staff
  • Wage allocation by property and entity
  • Commission calculations
  • Contractor W-9 tracking
  • Employer tax deposits and returns

Read about our payroll services, our work with real estate businesses, or book a consultation.