HR & Payroll Software for Restaurants & Hospitality

When choosing a restaurant payroll provider, there are several factors to consider. 

• Make sure the provider offers the specific services you need, such as handling taxes and compliance with labor laws. 
• Look for a provider with a good reputation and positive customer reviews. 
• Consider the cost of the service and whether it fits within your budget. 
• Check if the provider offers online access to payroll information and employee self-service portals. 
• Look for a provider who can integrate with your current accounting software. 
• Evaluate the level of customer support offered by the provider. 

Ultimately, it's important to choose a provider that can meet your specific needs and provide excellent service at a reasonable cost. 

Employers are generally not responsible for paying payroll taxes on tips that employees receive from customers. However, there are some exceptions and rules that employers must follow when it comes to tips and payroll taxes. 

• Employers are responsible for withholding income taxes on tips, just like they do for regular wages. 

• Employers must report all tips received by their employees to the IRS, either through Form 8027 (Employer's Annual Information Return of Tip Income and Allocated Tips) or by including them in the employee's W-2 form. 

• Employers may be required to pay FICA taxes (Social Security and Medicare taxes) on tips if the employee's total wages (including tips) are less than the minimum wage and the employer makes up the difference. 
• Employers should be aware of state-specific laws regarding the reporting and payment of payroll taxes on tips. 

It's important for employers to be aware of the rules and regulations regarding tips and payroll taxes and to comply with them to avoid penalties and fines. 

Tip compliance refers to the rules and regulations that employers must follow regarding the reporting and payment of payroll taxes on tips that employees receive. The employee agrees to report tips at a set rate, and the employer reports these tips to the IRS, either through Form 8027 or via the employee’s W-2 form. 

The IRS provides guidance on tip reporting and recordkeeping with further information. 

How to reduce turnover in the restaurant and hospitality industry? 

Businesses in the restaurant and hospitality industry can reduce turnover by creating a company culture of engagement. Engaged employees are happier, more loyal, and more productive than their disengaged counterparts — meaning higher profitability for your organization. By creating connections between colleagues and investing in your employees, you can build a workplace that will win and keep top talent.  

Overtime pay is calculated by multiplying the employee's regular rate of pay by 1.5 for each hour worked over 40 hours in a workweek. The regular rate of pay is the employee's total compensation (including base pay, bonuses, and commissions) divided by the number of hours worked. 

• First, determine the employee's regular rate of pay, which is their total compensation (base pay, bonuses, commissions) divided by the total number of hours worked. 

• Next, determine the number of overtime hours worked by subtracting 40 hours from the total number of hours worked in the workweek. 

• Multiply the regular rate of pay by 1.5 to calculate the overtime rate of pay. 

• Multiply the overtime rate of pay by the number of overtime hours worked to calculate the total overtime pay due. 

For example: An employee works 45 hours in a week and earns $10 per hour. The employee's regular rate of pay is $10. The employee worked 5 overtime hours in that week. 

• Overtime rate of pay = $10 x 1.5 = $15  
• Overtime pay = $15 x 5 = $75 

Some states have different overtime laws and regulations, and some employers have to pay time and a half for any hours worked over 8 hours in a day. It's important to check the state and federal laws and regulations for your specific situation.