payroll services for restaurants

Setting up restaurant payroll also requires that you implement some sort of tip reporting process. In this article, the restaurant-management experts at Sling discuss all aspects of restaurant payroll so that you can keep a tight rein on the outlay that can make or break your business. The rules around tip pooling have been mired in litigation since 2011, when regulations came into effect that forbid tip pooling between employees who customarily receive tips and those who do not. Tip pooling can now include non-tipped employees but the bill prohibits employers, managers, and supervisors from collecting tips made by employees. Employees that earn less than $20 in tips are not required to report their tips to their employer for that month.

The three most common state payroll reports are tax withheld, unemployment tax, and workers’ compensation. Whether your restaurant is in a reporting or non-reporting state, it’s always a good idea to check your state’s website for details. Every state has slightly different rules, and you want to make sure you’re compliant.


Just make sure you’ve itemized exactly what you need before contacting a representative. Restaurants tend to run on thin margins, so using Square for restaurants can help to reduce payroll costs. Even if your restaurant doesn’t use Square POS, Square Payroll still holds its own when put up against other software for smaller to mid-sized restaurants. With the Square Team app, your chefs and waitstaff can update their tax info, check pay stubs, clock in and out, and specify their preferred payment method.

Consult with your payroll processing company with any questions you may have. SurePayroll is an affordable and straightforward payroll software that offers automatic payroll runs, tax filing, and exceptional customer service. Restaurants are unique in that many employees are paid by tips, which presents unique challenges.

How to set up restaurant payroll

Read on to find out more about our top payroll software for restaurant selections. Pay365 offers options to pay employees daily, pay cards for those who don’t use traditional banking, and direct deposit, your crew will be satisfied, loyal, and at its best. Paychex’s Tip Network pools tips for easy division at the end of employee shifts; it bypasses direct deposit by loading tips onto prepaid debit cards called paycards. Gusto’s mid-tier plan bundles payroll basics with timekeeping software, employee self-service onboarding, time-off requests, and PTO features. Its most expensive plan gives you access to a dedicated HR consultant and a host of HR resources. Justworks’ time-tracking tool, Justworks Hours, contains robust features like mobile clock-in capabilities, overtime alerts and geo-stamping to ensure accuracy when payday arrives.

payroll services for restaurants

Alternatives like Patriot and Gusto may be a better option for these businesses. Paychex offers large business solutions; a blend of service and technology to help in your efforts to stay compliant & in control of your HR infrastructure. Sling even lets you set wages per employee or position and maximum expenditures per shift so you know exactly what you have to spend. Sling then provides you with alerts when you’re about to exceed the limits you’ve set.

What software is used in restaurants?

However, its limitations and flat pricing mean it is not a good fit for large companies, such as businesses with global workforces. Consider Rippling to manage payroll and attract talent for large or global workforces. Large companies that rely on automations to manage large workforces (i.e., to complete tax filings and run payroll) may need to consider an alternative. Because it’s first and foremost a scheduling tool, Homebase’s time tracking capabilities are excellent.

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These are the features you should look for to help you run your restaurant smoothly. The payroll program’s transparent employee self-service shift feature also makes shift swaps simple, helping ensure that restaurants don’t end up short-staffed. Restaurant employees will also appreciate restaurant-specific payroll features that support faster payment processing. Payroll software is not required, but it can save you a lot of time and effort. With payroll software, you can automate tax filing, direct deposit and employee self-service.

Additional Support for Restaurant HR Software

Also, many features for attracting top talent are missing, such as benefits administration tools and the ability to hire people across the globe. QuickBooks Payroll and QuickBooks Online are designed to work together to make small business payroll easier. Using both products, you can run automatic payroll for restaurants payroll, back up payroll and accounting data and instantly pull customized reports, making working with your accountant on payroll taxes seamless. However, you don’t get a clear view of their pricing without a quote from the sales team — so it’s hard to gauge just how expensive it really is.

These tools help companies avoid substantial fines and legal issues related to payroll mistakes. Indeed, the Internal Revenue Service assessed over $13 billion in employment tax-related civil penalties in the fiscal year 2022. Terms, conditions, pricing, special features, and service and support options subject to change without notice. Paychex solutions for businesses with 20–49 employees can help owners and managers save time, reduce errors & stay informed of new and changing regulations. With Sling, you’ll have unprecedented command of your employee scheduling so you can then fully control your restaurant payroll and keep your business in the black. Again, it’s vital to check the requirements in your state before creating and submitting your restaurant payroll reports.

Fortunately, there are plenty of payroll software options that can handle all of those needs and more. Managing employee wage garnishments can be challenging and time-consuming. It’s crucial to calculate garnishment orders correctly and send the appropriate payment amounts to ensure compliance and avoid penalties. We offer garnishment management of calculations, deductions, and payments as an add-on to our restaurant payroll services. This service alleviates the burden of garnishment calculations and payments so you can focus on more strategic growth initiatives. Nowadays most employees expect payments via direct deposit and every payroll provider we reviewed offers this.

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