How to Account for Law Firm Payroll in 2026: Partner Draws, Guaranteed Payments, Accruals, and the Entries That Keep Your P&L Honest

Payroll is usually a law firm's single largest expense — and the one most often booked wrong. Partner draws get coded as salary, bonuses land in the wrong period, and employer taxes never get accrued, quietly distorting matter profitability and partner distributions. This step-by-step guide covers the correct treatment of draws, guaranteed payments, accruals, and allocations for law firms.