Switching Your Restaurant Payroll Software

Payroll switching

A restaurant payroll and team management software can be such a significant time saver, giving you time back every single week to deal with the unpredictable.

Managing your restaurant team is so much more than just processing weekly payroll or setting schedules. Both of those tasks are traditionally extremely time consuming, and there are so many other management tasks that pop up, including hiring, training, managing conflicts, figuring out benefits, dealing with taxes, and managing tips. 

That’s why a restaurant payroll and team management software can be such a significant time saver, giving you time back every single week to deal with the unpredictable. Having a great payroll and team management software allows you to manage the entire employee lifecycle, not just the weekly tasks at hand. Through a robust software platform, you can have the ability to streamline employee onboarding, provide retirement benefits, and optimize team communication while still providing a best-in-class payroll and scheduling experience.

Today, many restaurants are looking to take this a step further by ensuring their payroll and team management systems integrate with their point of sale (POS), removing one additional step in the restaurant management process. 

It can seem overwhelming to shake things up with your payroll system and your point of sale, as together these platforms act as the nervous system to your business, but we’ll walk you through a couple of reasons why restaurants are seeing success by integrating these platforms.

Common Restaurant Payroll Software Complaints

There are many different payroll software companies on the market these days — here’s a few of the most common choices: 

  • ADP

  • Gusto

  • Paychex

  • Quickbooks

  • Toast Payroll & Team Management

Each of these companies provide unique value, but you want to ensure they’re the right fit for your specific restaurant payroll needs. 

Restaurants have unique challenges that require more from their payroll software, which is why it helps to understand some of the common problems restaurants face today when running payroll.

Complaint 1: The Current Payroll Process is Time Consuming

Restaurant operators tend to spend hours each week working on payroll. Since making sure staff is paid accurately and on time is such a critical business priority, it’s a non-negotiable part of a manager’s weekly tasks. 

And since most employees clock in and out on the point of sale, managers must pull the timesheet information from their POS and pull it over to the payroll system, and they also need to spend time validating that the time-entries are accurate and that tips are being distributed appropriately. 

Each of these tasks require additional steps on the manager’s ever-growing to-do list, taking time away from what they love to do: working with their team and delighting guests.

Complaint 2: The Current Payroll Process is Not Accurate or Reliable Enough

Sometimes, when exporting employee timesheets from the POS, the documents require manual formatting adjustment before you can import them into your payroll system. This presents an opportunity for human error.

When testing new recipes, errors can sometimes turn out to be happy accidents. But when running payroll, there’s no room for error, as getting your staff paid promptly and properly is a critical point of trust-building between an employee and an employer. 

Complaint 3: Restaurants Need a System to Better Manage New Hires

Hiring is always on restaurant managers’ minds, as the industry has long been known for its turnover woes. Whether it be hiring new employees to support expansion or replacing employees due to frequent turnover, each and every new hire must go through the onboarding process. 

A restaurant management team can become quickly overwhelmed with managing paperwork and ensuring your new hire is completing all the steps necessary to meet compliance.

Choosing A New Restaurant Payroll Software

When choosing a new restaurant payroll software, it’s important to keep in mind the above challenges, and which payroll software features a restaurant needs to meet these particular business needs.   

Feature 1: The Ability to Integrate with Other Technology

Time is critical when operating a restaurant, and the more you can integrate your payroll and team management into your existing technology stack, the better. As an example, most restaurants use their POS to manage employee clock-ins. By integrating your POS and payroll system, you can create a simple solution that eliminates the manual process of porting over timesheets to the payroll system in your restaurant. This both saves you time and helps ensure accuracy across each pay period.

Feature 2: The Capacity to Digitally Onboard Your Team

Employee onboarding is a critical step in the new hire process — it can make or break the employee’s perception of your work environment and the support they can receive as a team member. This experience can often be painful for both employees and employers due to the tedious amount of paperwork required to ensure compliance. From employee profile creation to federal, state, and local tax documents, the process can become overwhelming.

Finding a team management solution that allows the employee to complete everything digitally can help streamline these time-consuming steps. A digital platform can allow employees to complete these documents on their phone — and most importantly, on their time.

Feature 3: The Ability to Manages Payroll Taxes for You

Payroll taxes are a complex and important aspect of running any restaurant, and having a system that manages this helps give you peace of mind. A robust restaurant payroll software can automatically pay and file your quarterly and annual taxes on your behalf.

Feature 4: The Capacity to Grow with Your Business

Payroll and team management goes well beyond weekly payroll and the initial onboarding process for new employees. Many restaurants are starting to offer benefits packages, such as for health and retirement, as additional incentives for their employees. This may be a great option for your restaurant because as an employer this allows you to develop long-term employees, and give the employees peace of mind they can build a career in the restaurant industry.

As a restaurant owner, there are also additional services you require to run your business.  Below is a list of common services seen in the restaurant industry:

  • Business Insurance

  • HR Support

  • Workers’ compensation

Identifying a restaurant payroll software that both helps your employees and your business grow allows you the opportunity to create long-term success.   

Payroll & Team Management
Learn how a better payroll system can save you time and make your staff happy.

What to Expect When Switching Restaurant Payroll Services

Switching payroll providers can seem like a daunting task for your restaurant, but by being prepared you can make this an easy process. There are a few key items to have ready when preparing to switch your payroll provider.

FEIN and State Tax ID Numbers

An FEIN, or Federal Employer Identification Number, is a number assigned by the IRS to distinguish each business as a unique entity.  This number, along with your State Tax Identification Number, allows your payroll provider to easily identify your business and help ensure you’re compliant with both business and employee taxes.

Payroll Banking Information

The banking information determines which account you want payroll pulled from. Most businesses set up a separate bank account for managing payroll to ensure adequate funds are in the account each pay period.

Pay Frequency and First Check Date

The pay frequency defines how often you will pay employees, and understanding the first check date helps determine the necessary steps to meet this pay frequency with a smooth handoff from your current payroll provider.

Many restaurant payroll solutions help make the switch between providers an easy process, but it’s recommended to find a provider that allows you to complete some of this information on your time via a digital onboarding experience, and also allows you an easy way to ask questions and get answers when needed.

Restaurant Employee Handbook Template
Template for establishing restaurant employee rules and building your custom Restaurant Employee Handbook .