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Law Firms: New Hire Payroll Onboarding (2026)
New hire payroll onboarding at a law firm is the W-4, the Form I-9 within three business days, new hire reporting inside the state deadline, the pay code for the role, and the law firm checks this page cites before the first shift. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Checks specific to hiring in law firms
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.
An employee who holds a valid license to practice law and is actually engaged in that practice is an exempt professional, and the salary requirements of 29 CFR 541 subpart G do not apply. The exemption turns on the license and actual practice, not on how the lawyer is paid.
The federal onboarding sequence
Form W-4 (and the state equivalent) before the first check; Form I-9 section 1 on day one and section 2 within three business days; the new hire report to the state directory within its deadline, federal default 20 days and shorter in several states; the pay code, exemption status and direct deposit authorization on the employee record; and for attorneys and paralegals the pay basis documented so billable hours tracking is taxed and counted for overtime correctly from the first run.
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.
- 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]
- An employee who holds a valid license to practice law and is actually engaged in that practice is an exempt professional, and the salary requirements of 29 CFR 541 subpart G do not apply. The exemption turns on the license and actual practice, not on how the lawyer is paid. [29 CFR 541.304]
Read the full guide to how to onboard a new employee in payroll, and the rest of the law firm payroll library.
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Frequently Asked Questions
Hiring at a law firm: DOL Fact Sheet #17D
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.
Hiring at a law firm: 29 CFR 541.304
An employee who holds a valid license to practice law and is actually engaged in that practice is an exempt professional, and the salary requirements of 29 CFR 541 subpart G do not apply. The exemption turns on the license and actual practice, not on how the lawyer is paid.
How fast must a law firm report a new hire?
Within the state's deadline, 20 days under the federal default and as short as 7 days in some states. The report goes to the state new hire directory, and a rehire after 60 days is reported again.
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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