PEO for Restaurants
Think Payroll is All You Need?
PEO Offers More.
“Before Fourth, compliance was my biggest concern. Now, with their dedicated support, I have complete confidence that we’re always compliant.”
Lupe Castillo, GM, Pelican Hotel
- Process payroll in hours, not days
- Increase employee happiness with a self-service portal
- Onboard new employees faster
Most restaurants pay too much tax.
With higher rent, food, and labor costs, running a profitable restaurant is more challenging than ever.
You can’t control these costs, but you can lower your State Unemployment Tax (SUTA) and Workers’ Compensation premium by partnering with a PEO company.
Take the HR tasks you don’t want to do off your plate for less money than your current payroll provider.
Imagine reallocating the time and resources you currently spend on payroll, employment insurance, workers’ compensation and claims, and compliance woes.
“With any issue, they always have the best solution ready for us.”
“Fourth really understands the intricacies of the restaurant industry and how complex payroll can be with onboarding, tipped employees, and turnover. With any issue, they always have the best solution ready for us.”
— David Culhane, Operations Director, Sun Pubs
$40,000 reduction in payroll processing fees in the first six months.
Administrative relief for accounting teams who can now focus solely on finance management.
From health insurance to retirement plans, we’ve got your team covered
Compete with the big players in your industry to attract and retain the best talent. We help you lower your restaurant’s turnover rate by offering your team competitive benefits with little to no cost plans.
All the benefits of an HR team without hiring an HR team
Gain experience with professionals who understand the ins and outs of the hotel industry, as well as HR and payroll management. Get your questions answered and your issues resolved — without the overhead of in-house specialists. Accessing an HR team has never been easier, and our 24/7 intake for workers’ comp claims ensures your team is taken care of.
Stay ahead of workplace issues
Hit the ground running with an employee handbook that dictates the rules in your hotel. Get ahead of problems by enforcing acceptable behavior for staff on day one with a handbook tailored for your operations and state requirements — making expanding into new states a breeze.
Get one year of HotSchedules — on us!
We’ll cover a full year of HotSchedules for a limited time if you sign up for Fourth’s HR & Payroll service.*
Lower Your Unemployment Taxes
Leverage Fourth PEO’s ability to secure lower State Unemployment Tax Act (SUTA) rates. With Fourth as your PEO partner, you can lower your labor costs and reduce your HR burden without spending more money.
Reduced Workers’ Comp Rates
Fourth PEO’s pooled resources allow you to access more favorable workers’ compensation rates, reducing your expenses and exposure without compromise.
Save Money and Enjoy Benefits Payroll Companies Can’t Offer
| PEO | Payroll Servics | |
|---|---|---|
| Overall Cost | Lower | Higher |
| Direct Fees | Higher | Lower |
| Workers’ Comp. Costs | Lower | Higher |
| SUTA Costs | Included | NOT Included |
| Employee Benefits | Lower | Higher |
| Administrative Costs | Included | Extra Charges |
| Unemployment Claims | Included | Extra |
| Employee Handbooks | Included | NOT Included |
| Dedicated HR Support | Whenever you need help | NOT Included |
| 401K Plans | Included | NOT Included |
| $2MM Employer Practice Liability Insurance | Included | NOT Included |
| W-2 Forms | Included | Additional Costs |
Save Money, Protect Your Business, and Partner with the Best
Discover how partnering with a PEO can improve your business. With Fourth PEO, you gain access to top-tier employee benefits that are often cheaper than traditional payroll providers.
Imagine providing your team exceptional health, dental, and retirement plans while saving money and enhancing your business protection.
Whether you run a restaurant, hotel, or country club, our PEO services are designed to meet your unique needs. You can offer competitive benefits that attract and retain top talent without the hefty price tag.
Frequently Asked Questions
What is a PEO and how does it work for restaurants?
A Professional Employer Organization (PEO) is a co-employment arrangement in which Fourth shares employer responsibilities with the restaurant operator. Fourth handles HR administration, payroll processing, tax filings, benefits, workers’ compensation, and compliance — while the operator retains full control over daily operations, staffing decisions, and employee management. The PEO’s economies of scale allow operators to access services and benefits that would otherwise require a large in-house HR team.
What is co-employment and does it mean I lose control of my staff?
Co-employment means Fourth becomes a co-employer of your workforce for HR and administrative purposes only — handling payroll, benefits, and compliance on your behalf. You retain complete control over who you hire, how you manage your team day-to-day, and how you run your restaurant. Fourth handles the paperwork; you run the business.
What financial results can restaurants expect from using a PEO?
PEO clients grow 7–9% faster, reduce costs by 27.3%, and lower employee turnover by 10–14%. Sun Pubs saved $40,000 in payroll processing fees in their first six months with Fourth — and their accounting team was freed from payroll administration to focus entirely on finance management.
How does a PEO lower SUTA and workers' compensation costs?
Fourth PEO leverages its pooled client base to secure lower State Unemployment Tax Act (SUTA) rates and more favorable workers’ compensation premiums than most individual restaurants could negotiate on their own. These tax advantages and risk pooling benefits are built into the PEO model — meaning operators pay less for the same or better coverage without having to renegotiate anything themselves.
What's the difference between a PEO and a payroll service provider?
A payroll provider handles paycheck calculation and distribution, payroll tax processing, and direct deposit — and typically charges per payroll cycle. A PEO does all of that plus benefits administration, workers’ compensation, SUTA management, compliance support, employee handbooks, dedicated HR support, 401(k) plans, and employer practice liability insurance. Despite higher direct fees, the PEO’s overall cost is typically lower once workers’ comp, SUTA, benefits, and administrative savings are factored in.
Is a PEO more expensive than my current payroll provider?
On direct fees, a PEO costs more than a basic payroll service. But the total cost picture is different: a PEO includes workers’ compensation at lower pooled rates, SUTA management, employee benefits at group pricing, HR support, employee handbooks, unemployment claims handling, W-2 administration, 401(k) plans, and $2MM employer practice liability insurance — most of which carry extra charges or are unavailable through a standard payroll provider. For most restaurants, the total cost of a PEO is lower than assembling those services separately.
How does a PEO help restaurants compete for talent on benefits?
Through Fourth PEO’s pooled resources, even smaller restaurant operators gain access to competitive health, dental, and retirement benefits — including 401(k) plans — at pricing typically available only to large employers. Offering these benefits helps attract and retain employees who would otherwise choose larger chains or employers outside hospitality, directly reducing turnover.
How does Fourth PEO help restaurants stay compliant?
Fourth PEO monitors labor law and regulation changes on the operator’s behalf and ensures payroll, benefits, and HR processes remain compliant. The model includes $2MM employer practice liability insurance and 24/7 intake for workers’ compensation claims. As Lupe Castillo, GM at Pelican Hotel, put it: before Fourth, compliance was her biggest concern — now she has complete confidence the business is always compliant.
How does a PEO make it easier to expand into new states?
Each state has different labor laws, tax requirements, and workers’ compensation regulations. Expanding without a PEO means researching and complying with each state’s rules independently. Fourth PEO handles these complexities automatically — employee handbooks are tailored to state requirements, tax filings are managed per jurisdiction, and compliance is maintained as the business grows, making multi-state expansion significantly less burdensome.
What HR support does Fourth PEO provide day-to-day?
Fourth PEO provides dedicated HR and payroll experts available whenever operators need them — not a generic support line. Services include day-to-day HR question support, employee handbook creation tailored to the operator’s operations and state requirements, leadership training and development, background check and drug testing coordination, and 24/7 workers’ compensation claims intake. As Operations Director David Culhane of Sun Pubs described it: Fourth always has the best solution ready.
How does a PEO help with compliance and risk management in the hospitality industry?
Fourth PEO actively monitors labor law and regulatory changes on the operator’s behalf, ensuring that payroll, benefits, HR processes, and workers’ compensation remain compliant with federal, state, and local requirements. By managing these obligations through a co-employment structure, Fourth reduces the operator’s exposure to non-compliance penalties, wage and hour claims, and legal challenges — all of which carry heightened risk in hospitality given the complexity of tipped wage rules, minor labor laws, and Fair Workweek ordinances across multiple jurisdictions.
How does a PEO help with employee management and onboarding?
Fourth PEO supports the full employee management lifecycle — from recruiting and hiring through onboarding, benefits enrollment, and payroll setup. New hire documentation, I-9 verification, and compliance paperwork are managed within a structured, legally sound process. With a ready-to-go employee handbook tailored to the operator’s state requirements and a dedicated HR team available for day-to-day questions, operators can bring new employees on board faster and with greater consistency across locations.
How can a PEO improve employee satisfaction and retention in my restaurant?
Fourth PEO improves the employee experience through three levers: reliable, accurate pay processed promptly; access to competitive benefits — health insurance, dental, and 401(k) plans — that most independent restaurants can’t offer on their own; and a self-service portal that gives employees visibility into their pay, benefits, and HR information without needing to go through a manager. Together these reduce the financial stress and administrative friction that drive early-tenure turnover in restaurants.
