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Run the Payroll Fee Auditor →Blog · Payroll Management · Financial Services
Financial Services & Accounting Firms: Payroll Software vs. Managed Payroll Service (2026)
Financial services firms evaluating payroll options typically compare managed payroll service against payroll software. Here is the honest comparison.
Managed payroll service (like BEG) means a provider processes payroll for you. You submit hours and changes; they handle the rest including tax deposits, compliance, and year-end forms.
Payroll software (Gusto, ADP Run, Paychex Flex) means you run payroll yourself using a platform. You are responsible for configuring it correctly and keeping up with compliance changes.
Side-by-Side Comparison for Financial Services Firms
| Payroll Task | Managed Payroll | DIY Software |
|---|---|---|
| Deferred compensation structures setup | Configured for you | You configure |
| Tax deposits | Handled | You are responsible |
| Compliance updates | Applied automatically | Your responsibility |
| Multi-state filing | Included | Varies by plan |
| Year-end W-2s | Included | Included or add-on |
| Payroll errors | Provider corrects at cost | Your cost to fix |
| New hire onboarding | Handled | You set up |
Which Is Right for Financial Services Firms?
For most financial services firms under 100 employees, managed payroll wins on total cost and compliance coverage. The tradeoff -- giving up direct software access -- is outweighed by removing the compliance risk that comes with self-managing deferred compensation structures, FINRA recordkeeping, performance fee payroll, Series license holder compliance.
Payroll software makes sense if you have dedicated in-house HR staff with genuine expertise in Financial Services Firms payroll compliance, prefer hands-on control, and have a low tolerance for vendor dependency. These are real advantages, but they come with real responsibility.
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: U.S. Bureau of Labor Statistics: Occupational Employment and Wage Statistics
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