A Guide to Using a Payroll System for Restaurants

In order to run a successful dining establishment, you need to invest in a specific payroll system for restaurants. Restaurant owners, operators, and managers cannot run a restaurant without employees. By using a reliable system, you will keep the finances in order. More so, you will keep all your employees willing to work for you.

Finding the right restaurant payroll software for your business matters. You may at times find it challenging to calculate, distribute, and review your restaurant’s payroll. However, you must complete all these steps, and you must do them correctly. If you make any errors or do not comply with government mandates, you will likely pay a costly fine. Follow our guide to better understand some of the steps you need to take to avoid these issues in the future.



Create a Payment Schedule

After investing in a payroll system for restaurants, you should create a payment schedule. You and your business get to decide how often you run payroll. Nonetheless, you will find that there are common payment cycles in the restaurant industry. You may decide to pay your restaurant employees every two weeks, like many other restaurants.

Alternatively, paying your staff more often may help you to retain employees for the long-term. Keep your tipped employees in mind as well. These workers may receive their base wage every two weeks like the rest of your staff. However, they regularly take their tips home at the end of a shift, even more so if they earn cash tips.


Identify Your Tipped Employees

The United States Department of Labor determines that tipped employees regularly take home more than $30 per month in tips. A payroll system for restaurants can help you navigate these employees’ payments. Specifically, a payroll software can help since the regulations for these types of employees differ based on your state. Finding a strong payroll software to make the guidelines easy-to-follow will help you avoid penalties. You will particularly want to make sure you understand all of the state regulations if you run a multi-state restaurant business.


Calculate Your Staff’s Earnings and Deductions

The federal and state governments strictly enforce regulations around payroll. As a result, restaurant owners must properly calculate and distribute payroll to all of their employees. Calculate overtime, tipped wages, withholding, and deductions. You will base all of your calculated numbers on gross pay for your employees. You also must keep a record of deductions that you can bring home as an employer.


Finding the Right Restaurant Payroll Software



Our payroll software can serve as a reliable payroll system for restaurants for owners. Business owners who run multi-state chains can benefit from our software that supports all 50 states, as well as the District of Columbia. AMS Payroll also imports your data from QuickBooks, PeachTree, Excel, and Tab Delimited Text files. You can also make it export your data to a Tab‑Delimited Text File and/or QuickBooks General Journal.

Remember that you will likely need a combination of employee and contracted labor to run your restaurant smoothly. This payroll software is available in addition to our base software, a powerful 1099 and W2 forms filer. This platform has everything you need to handle every type of worker you may need to pay.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.