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Run the Payroll Fee Auditor →Blog · Payroll Management · Law Firm
Law Firms: How to Switch Payroll Providers (2026)
Switching payroll providers at a law firm means moving year-to-date wages and taxes per employee, every pay code for billable hours tracking, partner draw vs. salary and attorney bonus structures, the exemption records for attorneys and paralegals, and the retained records the law requires. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
What has to migrate from a law firm
Year-to-date gross, taxes and deductions per employee so the W-2 is one form at year end; every pay code, billable hours tracking, partner draw vs. salary, attorney bonus structures and IOLTA compliance, rebuilt with the same taxability; each state's withholding and unemployment account numbers and rates; garnishment orders with balances; direct deposit authorizations; and the exemption documentation for attorneys and paralegals.
Legal Services (NAICS 5411) is on OSHA's partially exempt industry list, so law firms do not have to keep OSHA 300 injury and illness logs unless OSHA or BLS asks in writing. They must still report any work-related fatality, in-patient hospitalization, amputation or loss of an eye.
Timing the cutover
A quarter boundary is the cleanest cutover because the old provider files a final 941 for its quarter and the new one starts fresh, with no Schedule D reconciliation. Mid-quarter switches work but require the outgoing provider's tax filings to be reconciled before the first new run. Live payroll on BEG is 3 to 5 business days from signing; the migration of law firm pay codes is done before that first run, not after.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- Legal Services (NAICS 5411) is on OSHA's partially exempt industry list, so law firms do not have to keep OSHA 300 injury and illness logs unless OSHA or BLS asks in writing. They must still report any work-related fatality, in-patient hospitalization, amputation or loss of an eye. [OSHA 29 CFR 1904 Subpart B, Appendix A]
Read the full guide to how to switch payroll providers, and the rest of the law firm payroll library.
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Frequently Asked Questions
When is the best time for a law firm to switch payroll providers?
At a quarter boundary, ideally January 1 so the W-2 year is clean. Mid-quarter is workable with a reconciliation of the outgoing provider's deposits and filings first.
What law firm data is most often lost in a switch?
The pay code configuration for billable hours tracking and partner draw vs. salary and the exemption records for attorneys and paralegals. Year-to-date figures usually move; the industry-specific setup is what gets rebuilt wrong.
What does managed payroll cost for a law firm?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Billable hours tracking, partner draw vs. salary and attorney bonus structures are configured at setup, not billed as add-ons.
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 $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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