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Run the Payroll Fee Auditor →Blog · Payroll Management · Law Firm
Law Firms: Payroll Software vs. Managed Payroll Service (2026)
Law 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 Law Firms
| Payroll Task | Managed Payroll | DIY Software |
|---|---|---|
| Billable hours tracking 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 Law Firms?
For most law 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 billable hours tracking, partner draw vs. salary, attorney bonus structures, IOLTA compliance.
Payroll software makes sense if you have dedicated in-house HR staff with genuine expertise in Law 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
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
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