The operator should let the payroll service impound the taxes for the restaurant to avoid potential penalties for not paying taxes timely. Federal unemployment taxes on a quarterly basis. Tips declared by the wait staff in excess of the charge tips reported. An annual form 8027 must be filed. They can be obtained through an insurance agent.
Some states require a business to have it by law.
State Unemployment is another quarterly tax that a restaurant must bear. A restaurant is assigned a rating based on the balance in their pool with the state. The experience rating changes are based on how much an operator pays into the fund, as well as the amount of employee turnover. Managing unemployment claims can be a full time job in itself. An operator can make voluntary contributions to the fund to lower the rating.