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Run the Payroll Fee Auditor →Blog · Payroll Management · Financial Services
Financial Services & Accounting Firms: Setting Up Direct Deposit (2026)
Setting up or managing payroll for financial services firms involves more steps than the basic payroll guides cover. FINRA Rule 3110 recordkeeping, IRC 409A for deferred comp, Form 5500 payroll data for benefit plans applies on top of standard federal requirements.
This guide covers the specific payroll setup and management requirements for financial services firms.
Step 1: Get Your Employer Accounts Set Up
Before running payroll for financial services firms, 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 financial services firms operating in multiple states, this means separate registrations in each state.
Step 2: Configure Pay Types for Financial Services Firms
Financial Services Firms have non-standard pay types that require specific configuration: deferred compensation structures, FINRA recordkeeping, performance fee payroll, Series license holder compliance. 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
Financial Services Firms payroll compliance requires: FINRA Rule 3110 recordkeeping, IRC 409A for deferred comp, Form 5500 payroll data for benefit plans. 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 financial services firms, bi-weekly or semi-monthly works for most salaried staff. deferred compensation structures 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 Financial Services Firms
BEG managed payroll handles all of the above for financial services firms 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 deferred compensation structures?
Deferred comp plans under IRC 409A are handled with correct payroll treatment for the deferral year and distribution year, including W-2 Box 11 reporting.
Can you handle FINRA payroll recordkeeping requirements?
FINRA registered representatives require payroll records maintained for at least three years. We maintain complete records and can produce them in response to a FINRA examination request.
Can you produce Form 5500 payroll data for our benefit plan audit?
Yes. We produce payroll-based data including eligible compensation by employee, contribution amounts, and plan participation data to support the annual benefit plan audit.
What does BEG charge for financial services firm payroll?
Financial services payroll runs at $25-$45 per employee per month. Deferred comp handling, FINRA-compliant recordkeeping, and 5500 data production are included. For a 20-person firm, that is $500-$900 per month.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Financial Services & Accounting Firms. 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: IRS: Understanding Employment Taxes
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