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Run the Payroll Fee Auditor →Blog · Payroll Management · Auto Dealership
Auto Dealerships: Multi-Location Payroll Guide (2026)
Multi-location payroll for auto dealerships means one payroll with per-location cost centers, a state account wherever a location or a remote employee sits, headcount thresholds counted across the whole company, and the auto dealership rules cited here applied at every site. BEG runs auto dealership payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
Rules that change with a second auto dealership location
A commissioned employee of a retail or service establishment is exempt from overtime under section 7(i) only if the regular rate of pay is more than one and one-half times the applicable minimum wage and more than half of compensation for a representative period of not less than one month is commissions on goods or services.
IRS Publication 15-B (2026) states that all use of a demonstrator car by a full-time auto salesperson in the sales area where the sales office is located generally qualifies as a working condition benefit if the use is primarily to facilitate the salesperson's services and there are substantial restrictions on personal use.
What is counted company-wide
OSHA recordkeeping, the ADA and Title VII, COBRA, FMLA and the ACA employer mandate all count employees across every location, so a second site can trip a threshold no single site reaches. FMLA eligibility is the exception: the 50-employee test is measured within 75 miles of the employee's own worksite. A location in a new state adds a withholding account (unless the state has no wage tax), an unemployment account, that state's minimum wage and overtime rule for salespeople and finance managers, and its new hire and final pay deadlines.
How the payroll is structured
One EIN, one payroll, one set of pay codes for front-end and back-end commission structures, flat-rate tech pay and F&I chargebacks, with location as a cost center on every employee record so labor cost, tax registrations and required postings resolve by site. Separate EINs per location are a legal-entity decision, not a payroll one, and each EIN files its own 941s and W-2s.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- A commissioned employee of a retail or service establishment is exempt from overtime under section 7(i) only if the regular rate of pay is more than one and one-half times the applicable minimum wage and more than half of compensation for a representative period of not less than one month is commissions on goods or services. [29 CFR 779.412]
- IRS Publication 15-B (2026) states that all use of a demonstrator car by a full-time auto salesperson in the sales area where the sales office is located generally qualifies as a working condition benefit if the use is primarily to facilitate the salesperson's services and there are substantial restrictions on personal use. [IRS Publication 15-B (2026)]
Read the full guide to how to manage payroll in multiple states, and the rest of the auto dealership payroll library.
Managed Payroll, Handled.
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Frequently Asked Questions
Does a second auto dealership location need its own payroll?
No. One payroll with location cost centers is the norm under a single EIN. A second EIN, if the entity structure requires one, files its own returns and W-2s.
Which thresholds count employees across all auto dealership locations?
OSHA logs, Title VII and the ADA, COBRA, FMLA coverage and the ACA employer mandate. FMLA eligibility for an individual is measured within 75 miles of that employee's worksite.
Auto dealership multi-site rule: 29 CFR 779.412
A commissioned employee of a retail or service establishment is exempt from overtime under section 7(i) only if the regular rate of pay is more than one and one-half times the applicable minimum wage and more than half of compensation for a representative period of not less than one month is commissions on goods or services.
What does managed payroll cost for an auto dealership?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Front-end and back-end commission structures, flat-rate tech pay and F&I chargebacks are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Auto Dealerships. BEG manages payroll at $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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