Restaurants are some of the oldest forms of business that have been documented. You serve patrons and make a profit off that labor. While that has stayed true after all these years, there are other parts of the business that have dramatically changed with the introduction of computers and software. One of those areas is payroll. Payroll software has made it much easier to deal with high employee turnover, track tip distributions, and adhere to varied wage laws across locations. Choosing the right payroll software can help save time and make life much easier for you, especially if you are a small business. Here are some of the top options in the market.

Editor’s Note: 360Connect does have financial relationships with some of the companies listed in this article.

What is Restaurant Payroll Software?

Restaurant payroll software is much like any other payroll software. It allows you to track your employees and how much you owe them based on hours worked/tips. This software is often built to handle restaurant-specific challenges and offer solutions like:

• Accurate recording of tips and distribution of said tips.
• Compliance with labor laws like overtime, special wage pays, and breaks.
• Automated tax processing from employee checks.
• Payroll analytics and reporting

Many of these services simplify your payroll and help you focus your time and energy on more important aspects of your business.

Benefits of Restaurant Payroll Software

Using restaurant payroll software has many different benefits. They can make your business more successful and provide a positive experience for your employees as well.

Pay Employees on Time

Ensuring timely payment is critical to keeping a happy and engaged workforce. Payroll software can help you streamline the process and set reminders for when you need to run payroll. Software can limit and reduce late payments and errors which will help you build trust with your employees.

Accurate Documentation and Records

Payroll software can be a vital tool for managing and storing records for tax and auditing purposes. Not only will this help you generate accurate payroll, but you can also have a paper trail at any time to check your figures and make sure they are correct.

Institute Clock-in/Clock-out Policies

Restaurant payroll software, which includes time-tracking features, can effectively enforce clock-in and clock-out policies. Employees are incentivized to clock in are the correct time to make sure their paychecks reflect the time they work. When you combine both, you can run payroll with just a couple of clicks.

Pay Employees in Their Preferred Method

Payroll software will often give you the option to pay employees through multiple methods. This can include things like direct deposit, paper checks, or even digital platforms like PayPal. Having this capability helps your business compete and retain talent.

Integrations with Accounting Software

The ability to link with existing accounting systems and other operational tools (such as POS systems) simplifies back-office operations. This allows you to view all of your information from one application. Integrations allow you to move between applications and save time while providing a better financial overview.

Automatically Withdraw and Remit Taxes

Taxation can be difficult to manage, especially in the restaurant industry where gratuities and variable shifts play an important role. It can also be difficult to manage if you don’t have the proper education. The software can help you with automating tax calculations, withholdings, and payments while saving you time.

Enhance Employee Trust and Compliance

Having robust payroll operations can help build trust with employees and keep them satisfied, helping ensure they stay longer even in an industry with high turnover. A robust payroll operation is also key for ensuring that you are following labor laws.

Top 5 Restaurant Payroll Software Providers

While there are many options on the market, we’ve researched and found some of the best and most intuitive options business owners can use.

Gusto

Gusto is an all-encompassing payroll and HR platform, and they have specific solutions for restaurant owners. It has an easy-to-use interface and combines core payroll processes with compliance solutions specifically built for handling tips and employment laws with restaurant operations. Gusto combines integrated time-tracking and compliance tip management.

Some Key Features Included:

• Automated Payroll Processing: Gusto automates payroll deductions, direct deposits, and tax filings, streamlining the payroll process to ensure accuracy and timeliness.
• Time Tracking and Attendance: Gusto offers integrated time-tracking so businesses can run payroll and review time in minutes.
• Employee Self-Service Portal: Gusto offers a portal for employees to view their paychecks, and personal information, and make requests.
• Automatic Payroll Tax Filing: Their software allows you to automatically deduct payroll taxes and file those taxes with the correct authority.

Most Gusto users report saving an average of 5 hours per week on payroll, and it often takes around 2 weeks to switch over to the new payroll. Gusto also offers integration with other platforms like Xero, TSheets, QuickBooks, and many more.

Paychex

Paychex is one of the leading providers of payroll software across multiple sectors. The platform provides a range of services including payroll, compliance, HR, and benefits management to support restaurant operations. Specifically, their payroll software is designed to be simple for both employers and employees.

Some Key Features to Include:

• Taxpay® Payroll Tax Administration with W-2/1099: Automatically calculate, file, and pay taxes when using the software with just a couple of clicks.
• Direct Deposit and On-site Check Printing: Paychex offers you the ability to easily opt for direct deposit while still being able to print checks when you need to.
• Paycheck Pre-Check: Allows employees to preview their paychecks and report any discrepancies before payday, saving you and their time.
• General Ledger Service: Gusto allows you to transfer your payroll data into other accounting software to give you the ultimate flexibility in managing your finances.

Paychex is a viable option because it can provide both you with an easy platform to navigate and your employees an easy way to manage their own pay. Paychex also provides custom quotes for their services; however, those quotes often include bundles of services.

OnPay

OnPay delivers a streamlined and efficient payroll service for restaurants, much like others on this list, they are focused on making business owner’s lives easier. OnPay is specifically highly recommended for small businesses due to its simplicity and upfront pricing.

Some Key Features to Include:

• Self-Service Onboarding: Employees can upload their information right from their phones, saving them time and getting them to work sooner.
• Monthly Fee Pricing: OnPay offers a simplified monthly subscription service for their services. This gives employers access to many different services under one price.
• Built-in HR Services: Get HR services like PTO tracking, employee onboarding, documentation keeping, and HR templates.
• Unlimited Pay Runs: OnPay allows you to run payroll as many times as you want during the month. You aren’t restricted to twice a month; you can pay your employees weekly if you’d like.

OnPay is a superb deal for small business owners, as you’ll also get automatic calculations for taxes, wages, tips, and other wages. You can also set permissions on who can and can’t run payroll and integrate with Xero or QuickBooks.

Rippling

Rippling is one of the most robust payroll software options on the market for restaurants. They offer a 100% error-free guarantee for their software and tout that the software can almost “run itself.” Rippling is designed to make your workload easier and is great for small businesses and franchises alike.  It has integration capabilities with various systems, including IT and HR platforms, resulting in a consolidated solution that manages not only payroll but also staff devices and apps should you choose.

Some Key Features to Include:

• Automated Compliance: Rippling handles compliance across multiple jurisdictions, making it much easier to pay your employees depending on various labor laws in different locations.
• Payroll Comparison: This software allows you to review and compare your payroll runs against each other to look for irregularities before giving approval.
• Dynamic Reporting: Rippling allows you to build customizable reports that display the information you need.
• Global Payroll Capabilities: You have the option to run payroll not only domestically, but also internationally.

Rippling makes it easy to manage your payroll even when you have complex problems or have to manage a large international chain. If you’re looking to combine payroll, HR, and IT services, Rippling might be the best option for you. Rippling has custom pricing for their bundles.

Paycor

Last, but certainly not least, Paycor is another strong contender for payroll software for restaurants. It emphasizes automation, compliance, and integration, providing a robust platform that simplifies payroll management. You don’t need to be an expert to manage Paycor.

• OnDemand Pay and Mobile Wallet: Paycor allows a mobile application where employees can view, manage, and take action over their wages. They can also manage things like PTO, recognition, and more.
• Automated Compliance Tools: Paycor handles the tax filing and compliance for W-2s and 1099s. Along with that, they also offer you a dashboard to manage your taxes and provide alerts and compliance warnings for incorrect information. You’ll also gain tax setup guidance.
• Extensive Customization and Reporting: Paycor allows you to make real-time adjustments to your reporting and you don’t have to deal with batch processing.
• Integration Partners: Paycor has over 250+ integrations within their systems, whether that be time-tracking, POS, or HR services. 

Paycor is used by some of the biggest companies and organizations in the world. The offer custom pricing for their services.

Looking for a Payroll Software Provider?

If you need payroll software provider solutions, 360Connect can help you! Just fill out our 1–2-minute form and we’ll contact you to verify your information and needs. From there, up to 5 suppliers will reach out to you with quotes about their services. This process is free and simple to use. Don’t wait, find your solution today!