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Payroll Services for Restaurants

Restaurant-specific services to save you time, help avoid hefty fines, and capture available tax credits

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Easy Payroll Processing For Your Restaurant

Whether you're a seasoned restaurateur with multiple locations or just opening your first cafe, our payroll solutions will simplify your business. Restaurant payrolls are governed by a unique set of employment and tax laws that typically do not apply to other industries. As such, it is important to ensure your payroll partner is prepared to protect your business and it's employees.

  • Intuitive online payroll portals
  • Full payroll & tax filing: federal, state & local
  • Expert support at your fingertips
  • Employee self service
  • FICA Tip Credit Reporting
  • Worker's compensation pay by pay
  • Labor law poster service
  • Timekeeping
  • General ledger interface
  • POS system integration
  • New hire reporting
  • Timely updates to keep you compliant
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Restaurant Tax Tips

Reporting Income

The IRS requires employees to report all tips earned to their employer. As an employer, you must ensure that the total tip income reported during any pay period is, at a minimum, equal to 8% of your total receipts for that pay period. Taxable income is governed by the Tax Equity and Fiscal Responsibility Act (TEFRA) and Tip Reporting and Alternative Commitment (TRAC). It is important to note that certain types of "tips" should be treated differently depending on how they are earned.

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The FICA Tip Credit

Federal Insurance Contribution Act (FICA) is a U.S. federal payroll tax that consists of Social Security Tax and Medicare Tax. As discussed in 'Restaurant Tax Tips' section above, tips that your restaurant's employees receive from customers must be recorded as taxable income - this applies to both cash and credit card tips.

A tax credit (different from a tax deduction) is a dollar for dollar reduction of your taxes due. The goal of the FICA Tip Credit is to incentivize restaurant owners to report staff tip earnings. By doing so, the employer will receive a tax credit on FICA taxes paid on wages the exceed the minimum wage! The FICA Tip Credit is reported on IRS Form 8846 and should be filed by your tax accountant when the business tax returns are submitted. While this may be a bit confusing at first read, just know that this is a tremendous benefit for every food establishment that qualifies for the FICA Tip Tax Credit.

You should qualify if you meet both of the following conditions:​

  1. You had employees who received tips from customers for providing, delivering, or serving food or beverages for consumption if tipping of employees for delivering or serving food or beverages is customary.

  2. During the tax year, you paid or incurred employer social security and Medicare taxes on those tips.


We are available for complimentary consultations to discuss how our payroll solutions can simplify your payroll processing and ensure your FICA Tip Credit is reported correctly to your accountant.

  • "We are a new client and the initial experience has been so amazing we are moving all of our businesses to Paysteady. Katie and Daniel are incredibly diligent and attentive--a welcome surprise after many years of rough customer service with other providers. Can't recommend highly enough."

    Steve R.

    Restaurant Owner

  • "We are a new client and the initial experience has been so amazing we are moving all of our businesses to Paysteady. Katie and Daniel are incredibly diligent and attentive--a welcome surprise after many years of rough customer service with other providers. Can't recommend highly enough."

    Steve R.

    Restaurant Owner

  • "We are a new client and the initial experience has been so amazing we are moving all of our businesses to Paysteady. Katie and Daniel are incredibly diligent and attentive--a welcome surprise after many years of rough customer service with other providers. Can't recommend highly enough."

    Steve R.

    Restaurant Owner

the core functions of Small Business payroll

Payroll Made Simple
Payroll Made Simple

We know restaurant payroll can be complex. We have partnered with industry leading software providers to help save you time, money and protect you from costly fines.

Client-Focused
Client-Focused

There are many considerations unique to restaurants that may complicate your ongoing processes. Some of these challenges are logistical hurdles due to the nature of the business, while others may be due to other federal or state specific regulations. Our knowledgeable team is equipped to advise you on best practices.

Customer Service is King
Customer Service is King

Ditch the 1-800-talk-to-a-robot headaches and speak with real U.S. based humans! While we empower our clients to manage their own payroll processing online, we are passionate about accessible customer service. Call, email or text message your dedicated rep anytime!

Flexible Solutions
Flexible Solutions

We realize that there is not a one-size-fits-all product for every business. We offer several software platforms that are customizable to handle most businesses whether you have 1 employee or 1,000.

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Additional Considerations for Restaurant Payroll

There are many other considerations that are unique to restaurants that may complicate your ongoing processes and procedures. Some of these challenges are logistical hurdles due to the nature of the business, while others may be due to other federal or state specific regulations. Our knowledgeable team is equipped to advise you on best practices.

A few more items that are frequently encountered in the restaurant space are:​

  1. Various pay rates for each employee (Ie. Some hours worked as a waiter, some as a hostess)
  2. Pay frequency requirements for hourly versus salaried employees
  3. Employees without bank accounts
  4. Pay statement requirement - rules vary by state, but are not required at the federal level
  5. New hire reporting and garnishment payments
If there are additional topics that you are uncertain about, please contact our team of experts!

Still Have Questions? Let's Talk.

Don't let the complexities of managing your back office distract you from running the business. PaySteady delivers easy-to-use payroll technology coupled with hands on customer service to ensure paydays are made simple and hassle free.

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