Managed Payroll · Finance
Bonus cycles, commission structures, deferred compensation, and performance-based pay make finance payroll a zero-error environment. One mistake in a filing is an audit trigger. We manage it all at $25-$45 per employee per month -- fully managed, nothing to touch.
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The Cost of Running It Yourself
How It Works
We map your current payroll process, employee roster, and complexity. You get a fixed monthly cost -- no surprises.
We configure and run your first payroll cycles. No migration required -- we work in your existing system. Transition takes 30-60 days.
Every pay cycle, every filing, every compliance update -- fully managed by BEG. Your team touches nothing.
Compliance Requirements
For public companies and companies preparing for a public offering, Sarbanes-Oxley Section 404 requires adequate internal controls over financial reporting -- and payroll records are explicitly in scope. Payroll transactions represent a significant portion of operating expenses, and the controls around payroll authorization, processing, reconciliation, and record retention must be documented and testable. A managed payroll service that maintains compliant record-keeping, audit trails, and access controls supports your SOX 404 controls framework. BEG maintains payroll records with the access controls and retention policies appropriate for a SOX-sensitive environment.
Finance firms pay their professionals in ways that standard payroll systems are not designed for. Financial advisors on a grid-based model receive commission payouts calculated against trailing production -- the payroll system must pull from production reports and apply the correct grid percentage to each advisor's production level. Portfolio managers may receive performance fees paid as W-2 supplemental compensation or as partnership distributions. Traders may receive discretionary bonuses calculated by desk against P&L. Each of these compensation types has different withholding treatment, different payment timing, and different W-2 reporting requirements. BEG configures payroll to handle each compensation type correctly for each role classification.
Investment advisers commonly engage independent contractors alongside W-2 employees -- financial planners, compliance consultants, research analysts, and registered representatives. The IRS 20-factor test, the ABC test in states that apply it, and FINRA guidance on associated persons create a complex framework for determining who must receive a W-2 versus a 1099. Misclassification of an employee as an independent contractor creates employment tax liability for the uncollected FICA, potential FINRA regulatory consequences, and exposure under state wage and hour laws. BEG reviews classification for each role type during the scope review and flags any arrangements that carry reclassification risk.
For public finance companies, IRC Section 162(m) limits the corporate tax deduction for compensation paid to covered employees (CEO, CFO, and the three highest-paid other officers) above $1 million per year. While 162(m) is primarily a tax planning issue, the payroll records must be maintained in a way that allows your tax advisors to identify covered employees, calculate the deductible versus non-deductible portions of each compensation element, and make the necessary adjustments in the corporate return. BEG maintains compensation records at the individual level with enough detail to support this analysis.
Finance firms with advisors or analysts in multiple states face the standard multi-state payroll compliance requirements -- separate employer tax registrations, different withholding rates, different SUI rates, different new-hire reporting -- plus additional considerations specific to financial services. Some states impose specific licensing and registration requirements on financial professionals working in those states. The employer tax registration in those states must be in place before the professional begins client-facing work. BEG manages state-by-state registration proactively as your team geography changes, so you are never operating in a state without the required employer registrations.
Who This Serves
Complex compensation structures including grid pay, performance fees, and advisor deferred comp require payroll that understands the RIA compensation model.
FINRA-regulated compensation, commission structures, associated person classification, and multi-state licensing make broker-dealer payroll unlike any other industry.
Partner distributions, senior manager bonus cycles, and multi-state professional staff require a payroll partner who understands partnership and professional service firm compensation.
Management company W-2 payroll alongside carried interest and incentive allocations requires payroll coordinated with fund administration and tax advisors.
Advisor grid pay, client service associate compensation, and transition packages for recruited advisors are finance industry payroll scenarios that standard platforms handle poorly.
Large enough to have real compliance exposure from compensation complexity, too small to justify a dedicated payroll compliance specialist internally.
What You Get
Common objection: "Switching payroll systems is too disruptive."
We do not require you to switch platforms. BEG operates as your managed payroll team inside your current system. If you want to move to a better platform, we can handle that too -- but it is never a requirement to get started.
Common objection: "Payroll services always add fees for every little thing."
The $25-$45 PEPM rate is all-inclusive: payroll processing, tax filing, compliance updates, year-end W-2s, and support. One number, everything included.
Common objection: "Payroll vendors disappear after onboarding."
Your BEG payroll specialist is your ongoing contact. When something changes -- a new hire, a state registration, a compliance update -- you send one message. There is no ticket queue, no chatbot, and no calling a 1-800 number. Your team has a real person who knows your account.
The Math on Waiting
An internal payroll specialist at your finance firm costs $60,000-$100,000 per year in fully-loaded compensation. Fully managed payroll at $25-$45 PEPM on a 50-person team costs $15,000-$27,000 per year. Every payroll cycle your team manages manually is compliance exposure. The cost of one IRS penalty or restatement exceeds what fully managed payroll costs for a year.
Your Next Transition Window
Payroll transitions take 30-60 days. If you want a clean cutover at Q3, Q4, or January 1 -- the window to start is now. Companies that miss the quarter-start timing typically wait another 3 months. The savings you defer are gone for good.
15 minutes. We scope your payroll, give you a fixed monthly cost, and show you what transition looks like.
FAQ
Partners, analysts, associates, portfolio managers, advisors, and administrative staff at investment firms, accounting firms, and financial services organizations.
No. We operate as your managed payroll team inside your existing system. Migration is an option, never a requirement.
Everything: payroll processing, federal and state tax filing, compliance updates, year-end W-2s, and dedicated BEG support.
30-60 days from scope review to first managed payroll run. We handle setup, testing, and go-live. Your team reviews and approves before anything goes live.
Your rate adjusts with headcount. Adding or removing employees updates your monthly cost at the same per-employee rate. No contracts to renegotiate.
Yes. Payroll represents a major category of operating expense, and the controls around payroll authorization, processing, and record retention are typically tested in a SOX 404 audit. BEG maintains payroll records with the access controls and audit trails appropriate for a SOX-sensitive environment.
BEG configures payroll to apply the correct grid percentage to each advisor based on their production level each period. Commission payouts are processed as supplemental wages with the appropriate federal and state withholding. W-2 reporting reflects the correct allocation between base salary and commission income.
Misclassification creates employment tax liability for the uncollected FICA on all payments made, potential state wage and hour violations, and -- for FINRA-registered representatives -- potential regulatory consequences. The IRS 20-factor test and FINRA guidance both create risk for arrangements that look more like employment than true independent contracting. BEG flags classification risk during the scope review.
Yes. Finance professionals often have base salary, discretionary bonus, commission, equity income, and fringe benefit imputed income all on the same W-2. BEG manages each income type with the correct withholding treatment throughout the year so year-end W-2 reconciliation is accurate and does not require restatement.
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