The Best Payroll Services for Restaurants in 2024

As a restaurant owner, you have to deal with a lot of complex tasks quickly. Managing staff, stocking inventory and serving customers are top priorities, but administrative duties like running payroll are equally important and often time-consuming. The best payroll services make the process painless, calculating wages, tips and taxes in minutes. They also keep you up-to-date on tricky compliance laws.

We understand that every restaurant is unique, so we’ve researched the top payroll providers on the market to help you decide which one is right for your restaurant. Whether you’re looking for an affordable, easy-to-use platform or a comprehensive solution with HR tools and countless integrations, we think you’ll find value in one of these payroll service providers we’ve reviewed.

The amount your restaurant will shell out for payroll services varies quite a bit. Most plans charge a monthly base fee and a per-employee fee. Some solutions, such as OnPay, charge one rate while others offer tiers of service with custom pricing based on your staff size, pay schedule and specific needs. You can expect to pay monthly between $30 to $150, plus $2 to $15 per employee, but if you have multiple locations or complex needs the prices may be higher. While most providers include unlimited payroll runs, some like ADP also charge every time you process payroll, which can increase costs quickly.

You may incur other costs, such as setup fees or tax preparation charges. Some payroll services include basic HR and time and attendance tools, while others are part of comprehensive, customizable solutions that offer add-on products. If you’re looking for a solution that combines payroll with accounting or HR tools, package deals from QuickBooks or Rippling could help your restaurant save. Most payroll providers offer a free trial so you can try out the service before committing.

Since restaurant owners often have to wear many hats, the best payroll solutions for restaurants often include tools that go beyond calculating wages and taxes. These are the features you should look for to help you run your restaurant smoothly.

Payroll Processing

Many providers offer restaurants flexibility with unlimited payroll runs while others only allow certain pay schedules, such as biweekly or monthly. Consider how often you need to pay employees and if you might need to run irregular payroll like paying contracted staff for a party or catering event. Most restaurants will need a solution that automatically calculates multiple pay rates for their floor staff, kitchen workers and managers. Busy restaurants will appreciate that most providers save you time and worry with automated payroll runs.

Tipped Wages

Restaurants are unique in that many employees are paid by tips, which presents unique challenges. A good payroll service will calculate tips automatically, withhold the appropriate taxes and make sure that federal and state minimum wage laws are met.

HR Features

Most payroll services included some basic HR features, namely employee onboarding tools that let you or your staff enter information related to tax withholding and benefits directly into the platform. Some include expanded HR tools for compliance, background checks, training and employee handbooks. A few offer a dedicated HR contact person, which could come in handy for big restaurants that typically don’t have HR staff. We found that advanced HR tools are usually restricted to premium plans or paid add-ons.

Time and Attendance

Time and attendance tools make keeping track of hours worked painless and can save you a lot of time when running payroll. However, not all solutions offer this feature and those that do usually include it as a paid add-on or part of a premium package. If your restaurant needs time and attendance software, look for a provider that goes beyond syncing hours worked with payroll. The best solutions also send overtime notifications, allow for paid time off (PTO) management and track regulatory compliance.

Benefits Management

Most payroll services we reviewed include employee benefits administration, although this feature sometimes is restricted to premium plans. As you onboard employees, you can offer them health insurance, 401(k) plans, workers’ compensation, unemployment insurance and commuter benefits. Some providers don’t offer coverage in all 50 states, so check to see if benefits are available where your restaurants are located.

Payroll Taxes

Payroll services save you time by calculating and filing your local, state and federal payroll taxes automatically. They also will prepare and send year-end forms like W-2s and 1099s to your employees that can be either printed or accessed via an app. Some providers will send the forms themselves but it might cost extra. Most services also guarantee that they will pay all fines for any tax calculation error, but some, such as QuickBooks, only offer this perk with premium plans and cap the penalty limit. The best services alert you to any irregularities before filing so you can make sure your taxes are accurate.

Integrations

A busy restaurant owner needs efficient business solutions that allow more time on the floor ensuring customer satisfaction. Most payroll services offer integrations that can sync data automatically to help run payroll quickly and painlessly. Some offer limited integrations while others work with hundreds of software solutions. Double-check that the payroll service you choose integrates with the time and attendance and accounting software that you already use.

Payment Methods

Nowadays most employees expect payments via direct deposit and every payroll provider we reviewed offers this. Some, like QuickBooks offer same-day or next-day deposit standard, while others offer speedier service for an additional price. Restaurant owners might find that some staff prefer to be paid by check or pay cards and we were glad to see that most services also offer these payment methods.

Employee Portal

An online and mobile employee portal allows your staff to keep track of the hours they’ve worked and access year-end tax forms. Some can even let employees check in and out of work and request time off.

New-Hire Reporting

Restaurants, especially ones that operate seasonally, can have a high turnover rate, which means owners spend a lot of time filling out required state new-hire paperwork. Many payroll services automate this process, making sure all the appropriate forms for the state you do business in are filed promptly.

When deciding which payroll service is right for your restaurant, be sure to follow these steps.

1. Determine Your Needs

The first thing you should do when choosing a payroll service is determine what you need to get out of it. Consider the size of your staff and how often you’ll pay employees. Also, think about whether you want a provider that includes basic HR and time management functions or if you want to integrate the solution with software you already use. If you plan on expanding, especially out of state, you’ll need to find a solution that can grow with your business and provide services in multiple states. Another important factor is price as some payroll services are part of comprehensive business solutions that can be expensive for small restaurants.

2. Research Your Options

Once you’ve determined your needs, you should start researching the top options on the market. Start by reading guides like this one and visiting vendors’ websites. Make sure to read online reviews to see how restaurants similar to yours feel about the service. Prioritize vendors that excel in the areas you need the most help with. Restaurant owners should pay special attention to the platform’s ability to work with tipped wages and different pay rates.

3. Reach Out to Vendors

Unfortunately, not all vendors offer transparent pricing. Many of the payroll service providers we’ve reviewed require calling for a custom quote. You’ll have to contact a sales representative to get an accurate idea of what you’ll pay each month and the full set of features included. While it may take more time, you’ll be able to ask questions specific to your restaurant and arrange demos. Restaurants tend to be fast-paced environments, so beyond the right features, you’ll want to make sure the platform is easy to use. Many vendors offer free trials but those who don’t may be able to offer a special deal like waiving the first payment.

4. Choose the Best Fit for Your Business

Once you have an accurate price quote, tried out a few services and read reviews, it’s time to make a decision. We recommend a solution that meets your business’s needs and budget, but also allows for flexibility, as the restaurant business can be unpredictable. You don’t want to waste time trying to implement a payroll service, so make sure your final choice is easy to set up and offers personalized assistance.

Restaurants can benefit from using payroll services in many ways. Here are just some to consider when deciding whether to outsource your payroll management:

• Quick and efficient payroll processing: From managing inventory to keeping customers happy, restaurant owners have a lot on their plates. Payroll software calculates wages and withholdings automatically for all of your staff within minutes, so you can spend less time in front of the computer and more time on the floor. Plus, with synced data and alerts, you can rest assured that payroll is accurate.
• Guaranteed tax compliance: Keeping up with federal, state and local tax and minimum wage laws can be complicated. Payroll software does it for you, making sure your restaurant stays compliant. If there are any errors and you incur tax penalties, most services will rectify the problem and cover the fee.
• Affordable HR capabilities: Most restaurants don’t have extensive HR needs but still need tools for onboarding employees, offering benefits packages and providing important documents and training materials. Many payroll solutions include these essential HR features standard as an add-on or as part of a comprehensive business solution.
• Support when you’re in doubt: Whether you’re trying to report tipped wages or keep up to date with overtime regulations, managing payroll can be complicated. Payroll service providers have knowledgeable customer support representatives available to answer any of your questions and help with issues as they arise.