Restaurant payroll services are a crucial part of running your business. They help you calculate hour wages and tips, manage shift schedules, and ensure that your business is up to date with federal and state taxes and employment regulations. Payroll is a recurring expense, and it’s important to process it correctly and on time for your employees and to protect your business from costly mistakes.

When it comes to finding a restaurant payroll service, there are many options out there. You can hire a payroll specialist, an agency, or use software. Payroll software is an excellent alternative to hiring a payroll specialist and offers numerous benefits like saving money, staying compliant, automating processes, and storing employee records. It’s important to find a restaurant payroll service that integrates with your point of sale system, scheduling, and time clock systems so all of the data is in one place and easy to access.

You’ll want to look for a restaurant-specific Restaurant Payroll Services payroll solution that has built-in Federal Insurance Contribution Act (FICA) tip credit reports, and the ability to track and record employee hours with time and attendance management systems. It should also have a mobile app for employees and managers to check timesheets and submissions on the go, and provide access to accurate financial reporting for your restaurant. It’s also important to consider whether or not you need a restaurant payroll service that has additional features such as minimum wage alerts, recruiting, onboarding, labor budgeting, performance management, and talent management.

The frequency of payroll processing is up to the individual restaurant, but it’s common to run payroll every two weeks or on a weekly basis. You’ll also need to consider how frequently you want to pay tipped employees, such as servers and bartenders. Some restaurant payroll services will allow you to choose the exact day that you want to issue paychecks, and some even offer same-day payments if necessary.

If you’re looking for a restaurant payroll service that also provides scheduling, time tracking, and HR tools, Homebase is an option worth considering. They’ve been around since 2012 and have helped over 100,000 small businesses with their services. Other popular restaurant payroll services include Gusto, Deel, and Square.

You’ll also need to determine if you’ll need a restaurant payroll bank account, which is a separate checking account that’s only used for payment of employee wages. The IRS requires that all restaurants have a payroll bank account to avoid the risk of accidentally depositing cash or checks into your operating accounts. The bank will require an Employer Identification Number (EIN) and ID numbers for each state, territory, or district in which you operate your restaurant to open a payroll account. Check with your local department of labor or tax office for more information on obtaining an EIN and other required documentation. Once you’ve set up your account, you can start paying employees. Be sure to deposit your employees’ wages into the correct account and make any required deductions and contributions.