The software offers flexibility, no setup fees and unlimited payroll runs. It includes basic payroll services for small businesses and is easy to learn and use, although it’s far less robust than many competitors. Errors with reporting tipped wages are also a common way that restaurants get into tax trouble.

• Whatever you do, make it easy on everyone by offering direct deposit and easy-to-understand paycheck stubs, so there’s little to no confusion or mixups come payday.
• The best way to boost your table turnover is to train waiters and kitchen staff well.
• This solution takes care of payroll with tax and compliance capabilities built in.
• If you need more advanced, scalable features, Gusto or ADP might be the right choice.
• With Gusto, you also don’t have to worry about keeping accurate track of deductions, hourly or salary wages, or payday deposits, as it automatically pays every employee registered in your payroll system.
• Some providers also offer HR or accounting tools, which can add value for money to payroll plans.
• When you have restaurants in multiple states and cities, the difficulties of managing your payroll are multiplied.

The first is a 12.4% tax to fund Social Security, and the second is a 2.9% tax to fund Medicare, for a combined rate of 15.3%. Half of payroll taxes (7.65%) are remitted directly by employers, while the other half (7.65%) are taken out of workers’ paychecks. Restaurants with only one location can take advantage of Homebase’s free Basic plan which offers extensive time clock and scheduling tools. As Homebase’s full-service payroll is an affordable add-on option for all of its plans, businesses have the chance to get payroll, employee management, and time tracking solutions at one low price.

Other Restaurant Resources

Here are seven kitchen management tips to make your kitchen a great place to work. Unfortunately, achieving this capacity is tricky payroll for restaurants because restaurants have limited space. Get final approval from top management for your schedule—assuming you need it, of course.

Setting up payroll for any small business is a large feat, but managing restaurant payroll is undeniably a complex process. There’s a lot you need to keep track of for payroll processing, but it’s crucial that you can pay your employees accurately and on time. Justworks is an HRIS and PEO that includes a payroll platform with employee self-service. As a PEO, it offers robust HR support and acts as an employer of record for your employees to take some of the administration work off your plate.

The 7 Best Restaurant Payroll Software in 2023

This illustrates why it’s imperative to check your state’s website for details on what reports are mandatory and when they’re due. If you visualize gross pay as a big pile of money, this step (and the previous two) is you removing expenses a few dollars at a time as required by law. Cost isn’t always the most important factor, but if it’s a major constraint for your business, start by finding software that covers your basic needs and fits into your budget. However, if there are audits or missed tax returns that need investigation you should be prepared to hold on to the documents for at least 7 years or more.