Managed Payroll · Accounting & CPA
Partner draw structures, staff accountant busy-season overtime, 401(k) matching on variable compensation, and client-code payroll allocations. BEG manages all of it at $25-$45 per employee per month. Fully managed, no migration required.
See your exact monthly & annual price - no call required
The Cost of Running It Yourself
How It Works
We map your staff structure, partner compensation model, 401(k) plan parameters, client-code payroll allocation needs, and any busy-season overtime patterns. You get a fixed monthly cost before anything changes.
We configure partner W-2 salary components, staff overtime tracking, 401(k) deductions with matching logic, and client-code allocation if needed. No migration required. We work in your existing system.
Every pay cycle, every 401(k) deduction, every busy-season overtime calculation, and every year-end W-2. Fully managed by BEG. Your admin team touches nothing during the months when they are already buried in client work.
What BEG Handles
CPA firm partners operating through S-corps or partnerships often receive compensation through a combination of W-2 salary and owner draws or K-1 distributions. For S-corp partners, the IRS requires that the W-2 salary component meet reasonable compensation standards (that is, a salary that reflects the market rate for the services the partner-employee actually performs for the firm) and is documented accordingly. Underpaying W-2 salary and taking the remainder as distributions is a known IRS audit trigger for S-corp owner-employees. BEG manages the W-2 payroll component for partners, coordinates with your CPA and tax advisor on the distribution and K-1 side, and ensures the W-2 salary structure is documented and defensible if the IRS scrutinizes it.
Staff accountants who are classified as non-exempt under the FLSA must be paid overtime for hours worked over 40 in a workweek. During tax season, when staff routinely work 60 to 80 hours per week, overtime calculations require careful tracking of actual hours worked each day and each week. CPA firms that incorrectly classify junior staff accountants as exempt based on salary alone, without meeting the FLSA white-collar exemption duties test, face wage and hour exposure during the period of their greatest workload. BEG manages overtime calculations for all non-exempt staff accountants and can advise on whether your current exemption classifications hold up to the FLSA duties test.
CPA firm 401(k) plans often include employer matching tied to total annual compensation, which creates complexity when compensation includes variable components like performance bonuses, busy-season bonuses, or partner distributions. Calculating matching contributions correctly requires tracking total eligible compensation across the plan year, applying the match formula to the right compensation components, and ensuring elective deferrals and matching contributions together do not exceed IRS limits. BEG manages 401(k) deductions, employer match calculations, and limit monitoring throughout the plan year so your firm avoids excess contribution corrections and maintains plan compliance.
CPA firms that track labor costs by client or engagement code for internal profitability analysis need payroll to allocate each employee's time to the client codes they worked during the pay period. This labor cost allocation supports engagement profitability reporting, rate-setting decisions, and partner compensation tied to book of business. BEG configures client-code payroll allocation for firms that track labor costs at the engagement level, producing allocation reports that your firm's management can use for profitability analysis without requiring manual reconciliation after each pay cycle.
CPA firms that employ remote staff or have expanded to serve clients across multiple states may have staff members creating payroll nexus in states where the firm does not have an office. A remote senior accountant working from home in a state different from the firm's home state creates payroll tax registration and withholding obligations in the employee's home state. BEG monitors where your staff members are located, determines when payroll tax registration and withholding obligations arise, and handles state payroll tax registration and remittance for all states where your staff creates nexus through their work location.
Comparison
| Capability | BEG Managed | In-House | Software Only |
|---|---|---|---|
| Partner W-2 + draw coordination | ✓ | CPA coordination needed | ✗ |
| Busy season overtime tracking | ✓ | Manual tracking risk | Self-service |
| 401(k) deduction + match management | ✓ | Plan admin coordination | Partial |
| Client-code payroll allocation | ✓ | Manual mapping | Partial |
| Multi-state remote staff compliance | ✓ | Compliance risk | Self-service |
| Year-end W-2 production | ✓ | ✓ | Self-service |
| No migration required | ✓ | N/A | Migration often required |
| Fixed all-inclusive monthly cost | ✓ | ✗ | ✗ |
The Math on Waiting
CPA firms that manage client payroll professionally while running their own payroll manually in a spreadsheet have a blind spot that becomes a liability when IRS reasonable compensation scrutiny, DOL overtime audits, or 401(k) plan examinations hit. Your own payroll should run the same way you would recommend for your best clients: professionally managed, fully compliant, and never something your admin is guessing at during busy season.
Your Next Transition Window
BEG transitions take 30-60 days. Getting into a managed payroll structure before busy season means your admin team has one less thing to manage during the highest-pressure months of the year. We scope your current setup, configure everything, and run your first payroll cycles before January. You focus on clients; we handle your firm.
15 minutes. We scope your payroll, give you a fixed monthly cost, and show you what transition looks like.
FAQ
BEG manages the W-2 payroll component for partners, processing salary through payroll with the correct withholding and employer tax contributions. We coordinate with your CPA and tax advisor on the K-1 distribution side and ensure the W-2 salary amount meets IRS reasonable compensation requirements for S-corp or partnership structures. The W-2 and K-1 components never get mixed: each is handled through the right channel.
BEG tracks actual hours worked each week for all non-exempt staff accountants and calculates overtime for any workweek over 40 hours. During busy season, when hours are highest, payroll processes automatically with correct overtime applied. We can also review whether your current exemption classifications for senior staff are defensible under the FLSA duties test before the season starts.
No. BEG operates as your managed payroll team inside your existing system. Migration is an option, never a requirement.
Everything: payroll processing, partner compensation management, busy-season overtime, 401(k) deductions and match calculations, federal and state tax filing, year-end W-2 production, and dedicated BEG support.
Yes. BEG configures client-code or engagement-code payroll allocation for firms that track labor costs at the engagement level. Each employee's time is allocated to the client codes worked during the pay period, and allocation reports are produced each cycle so your management team can run profitability analysis without manual reconciliation.
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