Restaurant payroll and HR solutions

Whether you’re managing schedules, calculating tip payouts or tracking time across multiple jobs and locations, see how we can help you simplify and streamline your day.

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Restaurant payroll services that help save you time

Running a restaurant, hotel or catering business is hard work and requires long hours. Add the day-to-day tasks of managing shift changes, multiple locations and job types, tips and legal requirements — and there just aren’t enough hours in the day. We can help you find time again with easy-to-use solutions, so you can focus on what matters most — your business.

Restaurant payroll software features and benefits

We talk with our hospitality and restaurant clients about their day-to-day challenges and combine their input with our industry expertise. The result? Solutions that can help you:

  • Process payroll quickly, easily and with better accuracy
  • Keep pace with minimum wage requirements for tipped workers
  • Document tipped wages for taxation and recordkeeping purposes
  • Run tip allocation reports that compare gross receipts to tipped wages
  • Access Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips
  • Offer employees the flexibility of electronic payment options
  • Capitalize on potential tax savings with work opportunity tax credit (WOTC) integration
  • Provide employees with mobile access to their pay and information

 

Integrate payroll with time tracking for even more value

ADP’s restaurant payroll is compatible with time and attendance programs so you can:

  • Easily create employee work schedules and track attendance
  • Enable employees to swap shifts, giving managers better control over staffing requirements
  • Connect seamlessly to your point of sale (POS) system to capture employee time worked and process tips with greater accuracy
  • Track multiple jobs and multiple rates of pay
  • Manage numerous locations

Payroll and HR solutions that meet your industry needs

You may only need easy-to-use payroll software, or you may be looking for solutions to make other aspects of HR simpler. See what our solutions can do for you.

Payroll

Fast, easy, accurate payroll and tax, so you save time and money.

Time & Attendance

Track hours worked, manage time-off requests and seamlessly integrate with payroll.

Talent

From recruitment to retirement, getting the very best out of your people.

Benefits

Employee benefits, flexible administration and business insurance.

HR Services

From best practices to advice and HR consulting.

Outsourcing Options

Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO.

Use analytics and industry benchmarks to stay one step ahead

Make informed decisions using intelligent data analysis tools, and access benchmarking data from over 40 million employees. Then compare your organization to others in your industry by location, role, size and more. Use these insights to answer questions such as:

  • Where and when do we incur the most hours worked?
  • What are unplanned absences costing us in overtime?
  • What compensation should we offer to hire a new employee (or retain an existing employee)?

Learn about other data analytics and benchmarks available to you by reading about ADP® DataCloud.

Restaurants we work with

Join the growing community of businesses leveraging ADP’s powerful technology, expertise and insights.

Extended Stay America 1,000+ Employees Hospitality/Restaurant Charlotte, NC

Sky Chefs 1,000+ Employees Hospitality Irving, TX

Powerplant Superfood Café 1-49 Employees Hospitality/Restaurant Los Angeles, CA

ADP restaurant payroll testimonials

Restaurant payroll FAQs

How do you do payroll tips for restaurants?

In some cases, employers in the restaurant industry can apply tips to satisfy a portion of their minimum wage obligation. This is known as a tip credit and it’s calculated by subtracting the minimum cash wage from the federal minimum wage. If employees don’t earn enough tips to reach the minimum wage, then the employer is required to pay them the difference. Note that state minimum cash wage and maximum tip credits may differ and certain states prohibit tip credits.

How do you keep restaurant payroll records?

Restaurants, like other businesses, are required to keep payroll records, such as pay statements, time records, Forms W-4, etc. In addition, restaurant employees must track their daily tips and provide their employer with a monthly tip report for any month in which their total tips received was $20 or more. They may use IRS Form 4070 for this purpose or custom forms and electronic systems supplied by their employer.

How are tips distributed in a restaurant?

Employees are entitled to keep any tips they receive unless they’ve entered into a valid tip-sharing, or “tip pooling,” arrangement with their coworkers. The Fair Labor Standards Act (FLSA) doesn’t limit contributions to tip pools, but an employer must notify employees in advance if there is a minimum contribution requirement. Additionally, employers may only claim tip credits on the amount of tips an employee actually receives from the tip pool.

Does an employer pay taxes on tips?

Yes, employers must pay their portion of Social Security and Medicare taxes, as well as unemployment tax, based on their employees’ earned wages and total reported tips.

Who’s considered a tipped employee?

Anyone who regularly receives more than $30 per month in tips is considered a tipped employee. Examples include bartenders, waiters, valets and gaming dealers. More recently, the federal government has allowed other types of workers, such as janitors and dishwashers, to begin receiving tips through tip pools, provided certain requirements are met. Some states, however, still restrict tip pooling agreements only to those who customarily receive tips.

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