Best Outsourced Payroll Services for Restaurants

Managing payroll in the restaurant industry can be uniquely challenging, given the complexities of tipped employees, fluctuating staff schedules, and strict labor laws. Many restaurant owners are turning to outsourced payroll services to simplify these processes, ensure compliance, and save time. This article will guide you through the top payroll services tailored for restaurants and highlight the benefits of outsourcing payroll tasks to professionals.

Why Restaurants Should Consider Outsourced Payroll Services

1. Simplified Tip Management

Tracking and reporting tips while ensuring employees meet minimum wage requirements is a significant challenge. Payroll services tailored to restaurants can automate these calculations, reducing errors and ensuring compliance with federal and state labor laws. If your team is also evaluating the best practices for managing tips, such as tip pooling or sharing, you might find our guide on fair tip distribution helpful.

2. Time-Saving Processes

With outsourced payroll, restaurant owners can delegate repetitive tasks such as wage calculations, tax filings, and benefits management to experts, freeing up time to focus on daily operations.

3. Labor Law Compliance

Restaurants face strict labor regulations, particularly regarding overtime pay, tipped employees, and wage deductions. Professional payroll providers stay updated on changing laws, ensuring compliance and minimizing risk.

4. Scalability for Seasonal Hires

During peak seasons, restaurants often hire additional staff. Outsourced payroll services can quickly adapt to workforce changes, managing payments, and onboarding efficiently.

5. Integration with Restaurant Software

Many payroll providers offer integrations with popular POS systems and accounting software used in the restaurant industry, streamlining operations and enhancing accuracy.

Top Outsourced Payroll Services for Restaurants

Here’s a curated list of the best payroll services designed to meet the needs of restaurant businesses:

1. Toast Payroll

• Website: https://pos.toasttab.com/

• Headquarters: Boston, MA

• Founded: 2011

• Specialties: Android Software, Point of Sale Software, Restaurant Technology, Fintech , and SaaS

Best for Seamless Integration with Toast POS

A leading choice for restaurants, Toast Payroll integrates seamlessly with Toast POS. It handles tip pooling, overtime, and labor cost tracking, making it a favorite among foodservice businesses.

2. Restaurant365 Payroll

• Website: https://www.restaurant365.com

• Headquarters: Irvine, California

• Specialties: Catering Software, Restaurant Operations Software, Restaurant Accounting Software, Restaurant POS Integration, Franchising Software, Intercompany Accounting, Food & Labor Cost Control, Restaurant Management, Inventory Management , Staff Scheduling, and Reporting and Analytics

Holistic Solution for Multi-Location Restaurant Groups

This platform provides a holistic solution, combining payroll with accounting and inventory management for multi-location restaurant groups.

3. Gusto

• Website: https://gusto.com/

• Headquarters: San Francisco, California

• Founded: 2011

• Specialties: compliance, payroll, human resources, and benefits

User-Friendly and Scalable for All Restaurant Sizes

Known for its user-friendly interface, Gusto simplifies payroll processing, tax filings, and benefits management. Its customizable features make it suitable for restaurants of all sizes.

4. ADP Run

• Website: https://www.adp.com/

• Headquarters: Roseland, New Jersey

• Specialties: Human Capital Management, HR BPO, Payroll and Tax Services, PEO, Retirement, Talent Management, Human Resource Management, Tax and Compliance, Benefits Administration, Payment Solutions, Time and Attendance, Health Care Reform, and ACA Affordable Care Act

Trusted for Comprehensive Compliance Support

A trusted name in payroll outsourcing, ADP Run offers scalable solutions for restaurants, with features like compliance support and detailed reporting.

5. Paychex

• Website: https://www.paychex.com/

• Headquarters: Rochester, NY

• Founded: 1971

• Specialties: Payroll Services, Payroll Tax Services, Benefits Administration, Retirement Services, Human Resources, Time and Labor, Workers'​ Compensation, Group Insurance, Individual Insurance, Business Insurance, HR, PEO, ASO, HR Technology, and HR Outsourcing

Paychex is highly customizable and integrates with restaurant accounting tools. It offers excellent customer service and robust features for managing complex payroll needs.

6. Square Payroll

• Website: https://squareup.com/

• Headquarters: San Francisco, CA

Best for Small Restaurants with Tight Budgets

Ideal for smaller restaurants, Square Payroll offers an affordable, transparent pricing model and easy integration with Square POS.

7. QuickBooks Payroll

• Website: https://quickbooks.intuit.com/

• Headquarters: Mountain View, CA

Perfect Companion for QuickBooks Users

QuickBooks is a natural fit for restaurants already using QuickBooks accounting software. Its automated payroll features and tax compliance tools streamline operations.

8. OnPay

• Website: https://onpay.com

• Headquarters: Atlanta, GA

• Founded: 2011

• Specialties: Payroll, HR, Benefits, Small Business, Accountants, and API

Affordable and Specialized for Tipped Employees

OnPay delivers affordable, high-quality payroll services with specialized tools for managing tipped employees and tax compliance.

9. SurePayroll

• Website: https://www.surepayroll.com/

• Headquarters: Rochester, New York

• Founded: 2000

• Specialties: Online Payroll Services, 401(k) Services, Health Insurance, Payroll Supplier Partnerships, Workers'​ Compensation Insurance, and Human Resources

Verdict: Intuitive and Reliable for Small Businesses

Designed for small businesses, SurePayroll offers an intuitive interface and support for tracking and reporting employee tips.

10. Wave Payroll

• Website: https://www.waveapps.com/payroll

• Headquarters: Toronto, Ontario

• Founded: 2009

• Specialties: online accounting, small business, software development, SaaS, invoicing and payments, cloud based accounting application, payroll, receipts, risk, product development, fintech, Software, and payments.

Best for Startups and Micro-Restaurants

A budget-friendly option for startups and small restaurants, Wave Payroll provides essential features like direct deposits, tax filings, and employee self-service portals.

Benefits of Payroll Managed Services for Restaurants

Outsourcing payroll goes beyond simple wage processing. Managed services often include:

• Automated Tip Reporting: Ensures compliance with IRS and Department of Labor guidelines.

• Tax Filing and Compliance: Handles federal, state, and local tax filings to reduce errors and avoid penalties.

• Employee Portals: Allows restaurant staff to access pay stubs, tax forms, and schedules easily.

• Detailed Reporting: Provides insights into labor costs and payroll trends for better decision-making.

• Integrated Systems: Syncs seamlessly with restaurant POS systems for accurate hour and tip tracking.

Streamline Your Restaurant Payroll Today

Outsourcing payroll can transform your restaurant's back-office operations, reduce compliance risks, and free up valuable time for your team.

At Over Easy Office, we specialize in providing outsourced payroll services tailored to the restaurant industry. Our team of restaurant-trained back-office professionals ensures accurate, timely payroll processing while keeping you compliant with labor laws.

Contact us today to learn how we can help you streamline payroll, reduce errors, and focus on what matters most—creating memorable dining experiences. Let’s make payroll stress-free!