Restaurant payroll is a system for calculating and managing the salaries of employees in a restaurant. It can help owners track hours, calculate wages, manage shift schedules, and maintain employee records. For restaurants, payroll includes hour wages as well as tips, which must be taken into account.
"Doing payroll," or “running payroll,” encompasses the following:
Calculating how much money (including tips) your business owes employees and contractors during a specific pay period.
Calculating how much the business owes in payroll taxes.
Calculating how much the business needs to withhold from employees' paychecks for taxes and benefits.
Paying employees what they are owed on time.
Paying into benefits on behalf of your employees.
Paying taxes on behalf of the business and its employees.
Updating your payroll records in case of an audit.