Free Payroll Tool
See what your payroll provider really charges
Most providers hide per-run and add-on fees. Audit your real cost per employee in about 30 seconds, free.
Run the Payroll Fee Auditor →Blog · Payroll Management · Law Firm
Law Firms: Multi-Location Payroll Guide (2026)
Law Firms payroll operations involve more moving parts than standard business payroll. billable hours tracking, partner draw vs. salary, attorney bonus structures, IOLTA compliance all create operational complexity that grows as your business scales.
This guide covers how to run Law Firms payroll operations efficiently, whether you have 10 employees or 100.
Key Operational Challenges in Law Firms Payroll
- Billable hours tracking. This affects law firms differently than businesses in other industries because of how work is structured and compensated.
- Partner draw vs. salary. This affects law firms differently than businesses in other industries because of how work is structured and compensated.
- Attorney bonus structures. This affects law firms differently than businesses in other industries because of how work is structured and compensated.
- IOLTA compliance. This affects law firms differently than businesses in other industries because of how work is structured and compensated.
Payroll Run Frequency for Law Firms
Most law firms run payroll bi-weekly or semi-monthly. The right choice depends on how your attorneys and paralegals are paid. Hourly staff often prefer bi-weekly for faster access to earnings. Salaried management often runs semi-monthly to align with accounting cycles.
Managing Payroll Across Multiple Law Firms Locations
For law firms with multiple locations, payroll operations must track hours, pay rates, and tax obligations by location. Multi-state operations add state withholding and unemployment filing requirements in each state where employees work.
The most efficient approach is a single payroll system with location-based cost centers. This gives you consolidated payroll processing in one cycle with per-location reporting for labor cost analysis.
New Hire Payroll Onboarding for Law Firms
New hire payroll onboarding for law firms requires: collecting the W-4 and state equivalent, I-9 verification, direct deposit authorization, benefit enrollment if applicable, and state new hire reporting within 20 days of the hire date. Setting up this process as a checklist prevents missed steps that create compliance exposure later.
How Managed Payroll Simplifies Law Firms Operations
BEG managed payroll at $25-$45 PEPM handles all of the above as part of the base service. Payroll operations run on your schedule without requiring your management team to maintain expertise in billable hours tracking or partner draw vs. salary.
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
Can you handle attorney bonus payroll?
Yes. Attorney bonuses are processed as supplemental pay runs with the correct federal and state supplemental withholding rates applied.
How do you handle partner draws vs. salary?
Partners taking guaranteed payments or draws are set up with the correct pay type. For W-2 partners, salary runs normally. For guaranteed payments outside W-2, we coordinate with your accounting team.
How do you handle attorney overtime exemptions?
Attorneys meeting the FLSA learned professional exemption are classified as exempt and not subject to overtime. We ensure exemption criteria are documented in the payroll system.
Can you process payroll across multiple office locations?
Yes. Law firms with multiple offices run on a single payroll system with state withholding and unemployment handled for each state.
What does BEG charge for law firm payroll?
Law firm payroll runs at $25-$45 per employee per month, all-inclusive. For a 20-attorney firm with 30 total staff, that is approximately $750-$1,350 per month.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Law 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. Department of Labor: Wage and Hour Division
From the blog