How to address restaurant payroll challenges

Written by: Andrew Levey

 

Everyone wants to get paid accurately and on time for a job well done – and that includes your restaurant staff. Failure to execute payroll correctly and on schedule can negatively impact customer service, upselling, staff retention, brand reputation and more.

How can you make sure your managers won’t have to spend precious time fixing mistakes – or that you won’t have to pay hefty fines for non-compliance with federal, state or city minimum wage laws?

Understand the unique challenges of restaurant payroll


There’s a lot of legislation and many regulations specific to restaurants, including those regarding: 

•    State and local minimum wage and tip credit – Pay employees for the time they actually work. Ensure that accurate clock-in and clock-out times are captured and sent through to payroll. For employees that receive tips, you’ll need to ensure that you’re complying with the relevant state requirements for tip credits. 
•    Spread of hours – The laws require additional payments to be made if the total spread of hours on a particular day exceeds 10 hours.
•    Predictive scheduling - Employers must provide all covered employees, including those paid hourly, with a written schedule seven days in advance of the first day of the scheduled work week. 
•    Tax reform - The $1.5 trillion Tax Cuts and Jobs Act of 2017 (TCJA) tax reform overhaul creates payroll challenges that restaurant operators must be aware of including those regarding:

  • Compliance 
  • Supplemental pay
  • Fringe benefit deductions, including those for transportation 
  • FICA’s Social Security wage base ceiling 
  • Affordable Care Act 
  • Family and medical leave

Make sure that your technology and payroll service providers are able to stay on top of all of the legislative changes. It’s important that you can be confident in your ability to pay your staff accurately.


Managing your payroll effectively and efficiently isn’t just good practice, it’s a fundamental part of compliance with regulation and the law. Bottom-line: You need a solution that can handle all the nuances of the sector, including multiple roles, different pay times for differently paid staff, variable hours and temporary workers. 

Download our How To Address Restaurant Payroll Challenges white paper to get started.
 

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