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)
Multi-location payroll for law firms means one payroll with per-location cost centers, a state account wherever a location or a remote employee sits, headcount thresholds counted across the whole company, and the law firm rules cited here applied at every site. BEG runs law firm payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
Rules that change with a second law firm location
Paralegals and legal assistants generally do not qualify for the learned professional exemption because an advanced specialized degree is not a standard prerequisite for the field, so they are owed overtime after 40 hours unless another exemption applies. The exemption is available to a paralegal with an advanced degree in another field who applies it, such as an engineer hired for patent work.
Employees holding a valid license to practice law who actually practice are exempt professionals, and the salary level and salary basis tests do not apply to them. Job titles alone do not determine exemption status; duties and pay must meet the regulations.
What is counted company-wide
OSHA recordkeeping, the ADA and Title VII, COBRA, FMLA and the ACA employer mandate all count employees across every location, so a second site can trip a threshold no single site reaches. FMLA eligibility is the exception: the 50-employee test is measured within 75 miles of the employee's own worksite. A location in a new state adds a withholding account (unless the state has no wage tax), an unemployment account, that state's minimum wage and overtime rule for attorneys and paralegals, and its new hire and final pay deadlines.
How the payroll is structured
One EIN, one payroll, one set of pay codes for billable hours tracking, partner draw vs. salary and attorney bonus structures, with location as a cost center on every employee record so labor cost, tax registrations and required postings resolve by site. Separate EINs per location are a legal-entity decision, not a payroll one, and each EIN files its own 941s and W-2s.
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.
- Paralegals and legal assistants generally do not qualify for the learned professional exemption because an advanced specialized degree is not a standard prerequisite for the field, so they are owed overtime after 40 hours unless another exemption applies. The exemption is available to a paralegal with an advanced degree in another field who applies it, such as an engineer hired for patent work. [29 CFR 541.301(e)(7)]
- Employees holding a valid license to practice law who actually practice are exempt professionals, and the salary level and salary basis tests do not apply to them. Job titles alone do not determine exemption status; duties and pay must meet the regulations. [DOL Fact Sheet #17D]
Read the full guide to how to manage payroll in multiple states, and the rest of the law firm payroll library.
Managed Payroll, Handled.
BEG manages payroll at $45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
Does a second law firm location need its own payroll?
No. One payroll with location cost centers is the norm under a single EIN. A second EIN, if the entity structure requires one, files its own returns and W-2s.
Which thresholds count employees across all law firm locations?
OSHA logs, Title VII and the ADA, COBRA, FMLA coverage and the ACA employer mandate. FMLA eligibility for an individual is measured within 75 miles of that employee's worksite.
Law firm multi-site rule: 29 CFR 541.301(e)(7)
Paralegals and legal assistants generally do not qualify for the learned professional exemption because an advanced specialized degree is not a standard prerequisite for the field, so they are owed overtime after 40 hours unless another exemption applies. The exemption is available to a paralegal with an advanced degree in another field who applies it, such as an engineer hired for patent work.
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
From the blog