The more your Indiana law firm grows, the more complex your financial situation and payroll will become. Client invoicing, payroll, financial reporting, and other aspects of the firm become more complicated as you add staff. You have to keep track of salaried and hourly employees, paid time off (PTO), benefits, time tracking, and more.
Managing payroll is also a repetitive task that wastes valuable time that could be better spent serving your clients. Here are some payroll tips for Indiana law firms that will help ensure accuracy and efficiency.
1. Understand Indiana Employment Laws
Your firm might specialize in contract law, family law, or some other area. There’s one area of law that every firm needs to stay on top of, but that’s employment law. State and federal laws govern wage and hour laws, pay schedules, overtime, avoiding discrimination in hiring practices, and much more. You must be aware of leave requirements, such as sick leave and the federal Family Medical Leave Act.
The laws ensuring fair labor practices for your employees also change frequently. HR and payroll staff must be current on any changes to ensure Indiana law firm payroll compliance. If your firm inadvertently violates labor or employment laws, you could face a lawsuit, fines, or penalties.
2. Training and Education for Staff
Ongoing education for HR staffers should be a priority when managing law firm payroll. Annual refresher courses on Indiana employment and labor laws will ensure everyone is on the same page and understands the rules. This also gives your HR team a chance to learn about any changes to federal or state laws so they can adjust payroll practices if necessary.
3. Review and Update Policies
As state and federal employment laws change, you will want to review the internal policies at your law firm in case anything needs to be updated. For example, the Federal Trade Commission (FTC) issued a final rule in 2024 that will ban all non-compete clauses for employees. This is expected to impact around 30 million workers. Employers must eliminate non-compete clauses from employment contracts and notify all employees of the ban before it goes into effect.
Ensuring that your internal policies governing employee treatment are compliant and current will keep your firm running smoothly. Updating policies and informing employees of changes helps keep everyone on the same page and can help avoid conflicts.
4. Don’t Shun Recordkeeping
Since you’re running a law firm, you probably realize better than anyone that we live in a litigious society. There may come a time when a disgruntled former employee decides to file a labor complaint or even a lawsuit against your firm.
The best defense against this is meticulous recordkeeping. In many cases, you’re already required to document and preserve employee records for a fixed number of years. Documenting your interactions with employees from their first interview to hiring and onboarding to performance reviews and until the day they leave the firm provides the best level of protection against future complaints.
5. Leverage the Right Tools for Success
As your firm grows and payroll becomes more complex, you may want to consider enlisting new tools and technology to help. At ASAP Payroll, we specialize in providing professional services, including law firms, with sophisticated and user-friendly payroll management systems. We can cater to varied salary and wage structures while ensuring compliance with professional standards. Since we’re based in Indianapolis, our payroll and HR experts are always updated on the latest Indiana employment and labor laws changes.
ASAP Payroll’s specialized services will make your law firm’s payroll more precise and efficient. Contact us today for a consultation tailored to the unique needs of Indiana law firms!
