Law Firm Payroll: The 2025 Guide (Partners, Associates, Staff, Bonuses/Draws, 1099, Multi-Office)
- Handle partners, associates, and staff with the proper pay types and tags.
- Map bonuses/draws cleanly; support 1099 for true contractors.
- We run payroll, file federal/state taxes, and e-deliver W-2/1099.
- Flat pricing: $50 + $7/emp (Full) or $40 + $6 (Basic); +$10/month per extra state.
- Typical onboarding: 5-7 business days after data handoff.
Law firms blend multiple pay models-partners, associates, paralegals, and admin staff-plus periodic bonuses and draws. Add hybrid/remote teams across states and the stakes get higher. This guide shows how to structure payroll so compensation is accurate, reporting is matter/department-aware, and filings are on time with minimal admin.
Roles & Pay Models in Law Firms
Partners / equity roles
We’ll map compensation in line with your corporate structure (e.g., payroll for W-2 roles vs. draws/other payments handled outside payroll where applicable). The goal: consistent treatment, clean exports, and audit-ready records.
Associates & staff (W-2)
Associates, paralegals, and administrative staff are typically W-2 with overtime rules for any non-exempt roles. We support weekly/bi-weekly/semi-monthly/monthly cadences.
Contractors / experts (1099)
Use 1099 for true independent engagements (e.g., expert witnesses, freelance translators). We generate 1099 e-delivery at year-end.
Bonuses, Draws & Special Payments
- Configure bonus types (annual, discretionary, performance) and run pre-flight checks before posting.
- Map draws/one-time payments appropriately per your structure to keep reporting and year-end outputs clean.
- AI flags outlier bonuses and duplicate entries before payroll posts.
Department, Practice Area & Matter Tagging
- Tag employees and payments by department (Litigation, Corporate, IP, etc.) and location/office.
- Optional matter/job codes for internal reporting.
- Consolidated vs office-level views-your choice.
Multi-Office & Multi-State Compliance
- Add extra states for a flat $10/month each; we prompt for registrations/SUI.
- Hybrid/remote staff? Our checks alert you if a state ID is missing before a run.
- Quarterlies tie out cleanly by state and office.
Time, Benefits & Deductions
- Imports from time/attendance tools; exports to accounting/BI.
- HSA/FSA/401(k) deduction exports; PTO accrual tracking.
- Garnishments with audit trails.
Taxes, Filings & Year-End
- Federal and state filings included (940/941, SUI, withholding).
- W-2 for employees and 1099 for contractors with e-delivery (paper optional).
- Quarter-end reconciliations and year-end pre-flight validation reduce reprints.
AI-Assisted Accuracy (Before Every Run)
- Flags irregular bonuses/draws, unusual hours/rates, and new-hire gaps.
- Catches missing state registrations as offices open or staff relocate.
- Validates W-2/1099 outputs ahead of year-end.
Pricing & Timeline
- Full Payroll (CPA-reviewed): $50/month base + $7 per employee.
- Basic Payroll: $40 + $6.
- Extra states: $10/month each.
- Most firms go live in 5-7 business days after data handoff.
Setup Checklist (Copy/Paste)
- Roster (role, office, dept; contractor list if any)
- Pay schedules; bonus/draw rules; deduction lists
- Banking + tax accounts; state IDs
- Prior quarter returns / YTD totals
- Department/office tags; any matter codes
Looking for payroll services tailored to your location?
Our payroll processing services by location offer flat-rate pricing and compliance across all 50 states, including city-specific tax filings and support for remote teams.
FAQs
Can you separate partner payments from staff payroll?
Yes-mapped per firm structure.
Do you support multi-office and remote teams?
Yes-state add-ons + office tags.
Any per-run fees?
No-flat monthly pricing.
Do you file federal and state payroll taxes?
Yes.
How fast can we start?
Typically 5-7 business days after data handoff.
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