What Makes Paypro’s Restaurant Payroll Services Right for You?
Running a restaurant can be hectic, even at the best of times. Finding the time to manage the complexities of a restaurant, especially payroll, can seem impossible. It’s not uncommon for managers to take restaurant payroll work home with them to complete during “down time” when they could be relaxing. Other managers delegate their restaurant payroll tasks to a conscientious employee to take care of in addition to his or her regular duties. But the complexities of payroll in the restaurant industry can be daunting, even for the most experienced manager or employee.
There’s a lot more to restaurant payroll than merely tracking your employees’ time and paying them an hourly wage. Even if you could spend your entire day on payroll, it would still be virtually impossible to stay up to date on every rule for federal, state, and local taxes, tips, employee benefits, and a whole host of other restaurant payroll considerations. If you make a mistake, and you’re caught non-compliant, it can be costly.
For instance, most states have unique and varied laws which apply only to businesses within the service sector, such as restaurants. New York, in particular, maintains a spread of hours law which owes an extra hour of pay to hourly, nonexempt employees whose workday begins and ends in increments more than 10 hours apart. Paypro’s diversified team is uniquely qualified to understand these laws and expertly consider everything necessary to help our clients in their industries.
Taking the “do-it-yourself” approach to restaurant payroll management can seem like a good way to save money. However, the cost of working with a restaurant payroll services company can provide a real return on investment.
Payroll Mistakes That Cost Your Restaurant Money
Working with a restaurant payroll services provider ensures that your payroll is error-free. Some of the most common payroll mistakes that restaurant managers make when handling it themselves include:
Initial Set-Up Errors
It’s crucial that your restaurant payroll is set up correctly right from the start. Without a solid foundation, small mistakes can snowball with time, leading to costly corrections. You must ensure that no errors are made when registering your restaurant, classifying your employees (e.g., full time vs. part time), setting up federal, state, and local tax withholding, Social Security and Medicare taxes, and more. You’ll also need a clear understanding of how much your restaurant—as an employer—will be paying in taxes.
Inaccuracy in State Unemployment Insurance Rates
State Unemployment Insurance Rates (SUI) are updated at the beginning of the year (in most states). You must remember to update your payroll system to reflect the new rate each time it changes. Failure to update your state SUI rate will result in incorrect filings, and you could be fined by your state’s unemployment insurance agency.
Inaccurate or Late Deposits
When handling funds for taxes, the rules surrounding the method and frequency of your deposits depend on your restaurant’s tax liabilities. You’ll need to adhere to the rules regarding whether or not you are required to make monthly deposits, which forms you need to use, and if electronic deposits are an option.
Failure to Keep Accurate Records of Manual Checks
Human error is a part of any business, but under the stressful conditions in a busy restaurant, human error can be especially prevalent. In an effort to save time, restaurant managers will sometimes pay their employees by manual check, especially when the payment is outside of the regular pay period (e.g., payday advances and bonuses). Forgetting to record these manual payments results in unbalanced books and inaccurate tax deposits.
Staff Trust and Morale Issues Due to Inaccurate Paychecks
Restaurant employees—like all employees—depend on their paychecks, and they have every right to expect to be paid in a timely and accurate manner. Mistakes in payroll calculations that lead to your employees being underpaid, or time management issues that result in late payment, can cause your employees to lose trust in you, and this takes time and effort to repair.
Restaurant Payroll Services
Staying compliant with payroll requirements is a time-consuming undertaking, and most restaurants simply do not have the time required to keep up with all of the rules and regulations. Paypro offers complete restaurant payroll services, tailored to your restaurant’s needs. When you no longer need to worry about tax compliance or any other aspects of payroll, your time is freed up to focus on running your restaurant (and actually having “down time” after hours).
How Paypro Helps with Restaurant Payroll
We start with a consultation, so our team can gain an understanding of your restaurant’s unique requirements. Paypro’s workforce management system is fully customizable, and together, we’ll design a restaurant payroll services solution that will allow you to run your restaurant far more efficiently.
We’ve built our reputation over more than 25 years through high-quality service by our dedicated team of experts. Our industry-leading client retention is a measure of our success. Contact us today to arrange for a consultation.
About The Author
Kayla is the Marketing Manager at Paypro Corporation overseeing all inbound and outbound marketing and sales efforts. She has 7+ years of experience working within the B2B and SaaS based solutions space and thrives on creating messaging and campaigns that introduce products and services to those who need them most.