--- title: "Payroll processing support for law firms" description: "Payroll processing support for law firms: payroll processing under your authority in Gusto, ADP, Paychex, QuickBooks Payroll, Xero Payroll, KeyPay or." url: https://ledgerbpo.com/industries/law-firms/payroll-support/ updated: 2026-09-11 publisher: LedgerBPO (SS Support Network LLC) language: en-US --- # Payroll processing support for law firms Payroll processing support for law firms involves salaried associates, hourly paralegals and staff, partner draws and guaranteed payments that must stay out of payroll expense, and often bonuses tied to origination or collection. Our payroll desk prepares each run in Gusto, ADP or your payroll platform from approved hours and the compensation schedule, posts the journal to QuickBooks Online or Xero by practice group, reconciles payroll tax liabilities and benefit deductions monthly and keeps partner compensation in equity where the firm's accountant directs. - Since 2020 - US · UK · CA · AU - Named accountant plus backup - Your software, no lock-in [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Updated September 2026 ## How it runs for law firms and solo practitioners The firm approves and releases every run, and no payroll ever touches the trust account. ## What is payroll processing outsourcing? Payroll processing outsourcing means a remote team prepares each pay run inside your payroll software: reconciling hours, entering changes, checking deductions and producing the run for the employer to approve. The employer keeps the payroll account, the bank authority and the legal responsibility. The provider posts the payroll journal and reconciles it, so payroll and the books agree. ## What we handle for law firms and solo practitioners - Prepare payroll runs from approved staff hours and the compensation schedule - Post payroll journals by practice group and cost center - Keep partner draws and guaranteed payments in equity, not payroll expense - Calculate origination and collection bonuses from reconciled billing data - Reconcile payroll tax and benefit liabilities after every run ## The KPI that matters here Payroll journal posted and liabilities reconciled within 2 business days of each run, with zero partner draws recorded in salary expense. ## Law firms compliance notes ### IOLTA and trust accounting (US and Canada) Client funds sit in a separate trust or IOLTA account with an individual ledger per client, and the firm may never hold its own money there beyond what the rules allow for bank charges. We support the supervising attorney by keeping the client ledgers current, preparing the monthly three-way reconciliation and flagging any negative client balance the same day. We never have signing authority on trust accounts and never move client funds; the attorney approves and executes every transfer. ### SRA Accounts Rules (UK) Firms regulated by the Solicitors Regulation Authority must keep client money separate, reconcile client account at least every five weeks, return client money promptly when there is no longer a reason to hold it, and obtain an accountant's report within six months of the period end unless exempt. We prepare the reconciliations and the working papers for the COFA and the reporting accountant; the firm remains responsible for the client account. ### Retainers, earned fees and transfers An advance fee deposit is a trust liability until the work is done and invoiced. We prepare the transfer schedule showing which earned fees may move from trust to operating after the invoice is issued and any required notice period, and the attorney authorizes the transfer. Revenue is recognized when earned, not when the retainer is received. ### Costs advanced and disbursements Amounts the firm pays on a client's behalf are recorded as a receivable from that client and matter, not as firm expense. In the UK, disbursements need correct VAT treatment depending on whether the firm acted as agent. We track each cost to its matter and confirm the VAT position with the firm's accountant. ## Law firms software we work in - [QuickBooks Online](https://ledgerbpo.com/software/quickbooks-online/) - [Xero](https://ledgerbpo.com/software/xero/) - [Bill.com](https://ledgerbpo.com/software/bill-com/) - Clio - LeanLaw - CosmoLex - PracticePanther - LawPay - [All 50 platforms](https://ledgerbpo.com/software/) ## More for law firms and solo practitioners Other services for law firms - [Bookkeeping](https://ledgerbpo.com/industries/law-firms/bookkeeping/) - [Invoicing and billing](https://ledgerbpo.com/industries/law-firms/invoicing-and-billing/) - [Accounts receivable](https://ledgerbpo.com/industries/law-firms/accounts-receivable/) - [Accounts payable](https://ledgerbpo.com/industries/law-firms/accounts-payable/) - [Bank reconciliation](https://ledgerbpo.com/industries/law-firms/bank-reconciliation/) - [Month-end close](https://ledgerbpo.com/industries/law-firms/month-end-close/) - [All law firms services](https://ledgerbpo.com/industries/law-firms/) Payroll support in other industries - [Marketing agencies & consultancies](https://ledgerbpo.com/industries/agencies/payroll-support/) - [Auto repair shops & dealerships](https://ledgerbpo.com/industries/auto/payroll-support/) - [Behavioral health practices](https://ledgerbpo.com/industries/behavioral-health/payroll-support/) - [Daycares, schools & education](https://ledgerbpo.com/industries/childcare-education/payroll-support/) - [The full payroll support page](https://ledgerbpo.com/services/payroll-support/) ## Frequently asked questions ### How do you handle partner compensation differently from staff payroll? Equity partners in a partnership or LLP usually receive draws and guaranteed payments, which are posted to partner capital or as the firm's accountant directs rather than through W-2 payroll. Associates and staff run through the payroll platform normally. We keep the two streams on separate schedules so the P&L and the partner capital accounts are both correct. ### Can you calculate associate bonuses tied to collections? Yes, where the bonus schedule is based on billed or collected fees, we calculate it from Clio or LeanLaw data that has been reconciled to the ledger. The calculation is provided to the managing partner for approval before it enters the payroll run. Because collections are reconciled monthly, the bonus base is not disputed later. ### Which payroll platforms do you support for law firms? Gusto, ADP, Paychex and QuickBooks Payroll in the US, Wagepoint in Canada, Xero Payroll or KeyPay in the UK and Australia. We prepare the run and post the journal; you approve and release. Superannuation, pension auto-enrollment and state tax registrations are tracked so the liabilities reconcile each month. Next step ## Books closed. Invoices paid. Every month. Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close. - Reply from a named person within 1 business day - No setup fee, month-to-month - Your software, your data, no lock-in Start with a custom quote [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours. --- Source: https://ledgerbpo.com/industries/law-firms/payroll-support/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt