restaurant payroll management

Carrie Luxem and the Restaurant HR team have been an exemplary partner for DMK Restaurants. Their recipe of restaurant industry expertise mixed with seasoned professionalism makes Restaurant HR the ideal match for small to medium size restaurant groups. Carrie Luxem, its founder and leader, is a dynamo that truly understands the value of creating value for each of my restaurants based on its unique needs. Consider employee needs against your business requirements when building your work schedules.

  • When running restaurant payroll manually, you should meticulously keep track of every employee’s pay rate and work hours in all their different capacities.
  • Employees that earn less than $20 in tips are not required to report their tips to their employer for that month.
  • Understanding the ins and outs of paying employees, observing labor laws, and complying with the tax code is critical to running a business.
  • It’s important to note that some local and state jurisdictions apply and require different cash wages.
  • Contact Complete Payroll to help minimize your tax burden while staying compliant.
  • First, you must determine the hours worked by each employee from your time clock or timesheets.

US-based customer support is also available if you need help at any point. Plus, Gusto helps employees and contractors stay on top of their finances with helpful apps, like the Gusto wallet app, which helps employees track where the money from their paycheck is going. Employees can also use the Gusto debit card to get faster access to their cash. In addition, you will need to track your own deductions that you can take as an employer.

Related Cost Guides

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.

If you already use QuickBooks for bookkeeping and accounting, this add-on is a no-brainer. Federal law requires employers to pay tipped employees a tipped minimum wage of $2.13 per hour. This restaurant payroll management differs from the federal minimum wage for untipped employees, which is $7.25 per hour. This is because federal law allows employers to take a tip credit from their tipped employees.

A guide to restaurant payroll in 2023

Like food cost, labor costs are a significant restaurant cost you need to monitor carefully. Have employees sign for any tips you are paying out of the register at the end of the shift and record all tips in payroll for calculation and collection of taxes. Legally, you are required to pay income taxes on your income, tipped or not. The IRS does have the right to review employer sales receipts in an audit. Eligibility for Social Security and Medicare benefits are dependent on how much employees paid into those systems during their working career and also how much employers contribute.

Patriot Payroll software is an online system ideal for an inexpensive way to process payroll quickly. It offers automated payroll, contractor payments, expert support, payroll setup, and more. Its basic and full-service payroll options make it a reasonably priced restaurant payroll software solution. The best restaurant payroll software should be able to help you manage crucial back-end tasks, such as time tracking, taxes, and employee benefits. To find the best restaurant payroll software, we looked only at payroll providers that offered restaurant-specific features like tip imports and minimum wage compliance.


Employees that earn less than $20 in tips are not required to report their tips to their employer for that month. However, when the total tips are greater than $20, employees must report tips monthly. This is done by filing IRS Form 4070, Employee’s Report of Tips to Employer, or a similar statement with their employer. Implement a strategy for employees to record the amount of their tips every day they work.

restaurant payroll management