A Complete Guide to Restaurant Payroll

restaurant payroll management

KEENA’s Staffing Division actively recruits for a variety of positions within a wide range of businesses and industries. We encourage you to complete our online application so that you may be entered into our growing database and considered for outstanding local positions and job opportunities. Once you have completed the application, please feel free to contact KEENA’S Staffing Coordinator for any additional information or questions you may have regarding these positions.

restaurant payroll management

These include FICA tax, which covers social security and Medicare, and FUTA tax which covers unemployment insurance. According to the IRS, the current FICA tax rate is 15.3% of the employee’s gross pay, of which the employer and employee each pay 7.65%. The current FUTA tax rate is 6% of the first $7,000 of wages, although many businesses qualify for state tax credits that bring it down to only 0.6%. Once a payroll schedule has been chosen, set up direct deposits into your employees’ bank accounts. This is preferable to writing checks because you can’t predict when an employee will cash their check, and this could cause cash-flow complications for the restaurant. Processing restaurant payroll is not just a matter of how employees are paid, but also when they are paid, which involves setting up a payment schedule.

Paychex Flex

It allows you to set up automations for recurring payroll and offers multiple payment options, including direct deposit and ADPCheck. RUN also includes add-ons for benefits administration and tax form filing for additional fees. Restaurant employees commonly have multiple roles to fill, and these roles usually come with different pay rates. It’s, therefore, essential to restaurant payroll management track separately how many hours your employees work in each role. If these involve tipped employees, you’ll need to track tipped wages versus federal minimum wage in addition to the hours worked in another position. Our restaurant payroll software handles all auditing and preparation of city, state, and federal (if applicable) taxes within regard to payroll tax returns.

restaurant payroll management

In addition to payroll software, Paychex also provides employee benefits, time clock, HR, and business insurance solutions, but these are all sold separately. Local mandates may include requirements about predictable pay, regular scheduling, or employee breaks. QuickBooks Payroll is one of the products in Intuit’s suite of solutions.

What is restaurant payroll?

The best restaurant payroll software can handle fluctuating staffing levels, tips and time tracking in addition to basic payroll runs and taxes. Paychex is one of the best restaurant payroll software platforms for restaurants of all sizes. It is robust enough to manage their specific needs, including tip reporting and multiple pay rates. The time and attendance add-on tracks the time of your hourly employees for accurate payments. Paychex also supports payroll and tax processing, plus compliance in several locations, which is ideal if you need to pay employees in different regions. In addition to ensuring you are documenting your staffs’ minimum wage correctly, both employees and employers need to calculate and report tips accurately because tips are taxable income.

  • Patriot has affordable plans, including an economical option for DIY payroll tax filings if you prefer.
  • Keep in mind that tip calculations on a customer’s receipt are not service charges.
  • You are required to collect these taxes from the employee based on their total earnings, including tips.
  • It has flexible tools to manage the wage-processing requirements of small businesses, including restaurants.

Restaurants can run payroll through payroll software as with any other business. However, you need to make sure to use a payroll service that makes it easy to account for tips if your staff receives them as part of their compensation. Another important factor in your restaurant payroll costs is payroll tax. Keep in mind that this only applies to the base wage and not tips earned by tipped employees, which are taken home at the end of a shift, often in cash. Running a restaurant involves many expenses which may quickly deplete your business bank account funds. Therefore, it’s important to have a separate account with adequate funds at all times for paying employees at the end of the payroll period.



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