Paying your team: Payroll system must-haves

Employees adapt to a lot of change in restaurant work, with shifting schedules, menu updates, busy and slow days, and the customers they serve—getting paid on the regular is non-negotiable. 

A payroll system has to be dependable and accurate and a restaurant’s system can differ from other businesses when you bring tip taxes and credits (calculating, filing, and paying on the local, state and federal levels) into the equation. 

When shopping for payroll software… 

• Check out the company’s reputation for accuracy and whether it owns its mistakes. You’re subscribing to an automated payroll service to avoid accounting and compliance errors that can happen when you process payroll manually. Some tax consultants make a living clearing up payroll system mistakes.
• You want a system that handles pay for hourly and salaried employees along with seasonal or contract workers, and one that tracks time off and sick day accrual and use.
• Anticipate turnover and check out how intuitively the system onboards new employees.
• Anticipate growth: can the payroll system expand as you add employees or open new units?
• Make sure the system not only handles insurance, but flexible spending or health savings accounts and 401(k) set ups if you offer them. 
• Check that the system handles earnings, credits and deductions especially for tips, bonuses, commissions, and expense reimbursements.
• Find out whether all the functions you need the system to perform (including filing specific forms, like the 8846) are included in the monthly subscription—or will you be charged extra? Compare system set-up fees, too.
• Think about how you need your payroll software to integrate with your legacy accounting system and POS. Are there any disconnects there?
• Ask if the payroll software provider offers a free trial period to see if it’s easy to use and fits the operation.

Must haves: 
A payroll system needs to have a portal through which employees can view their paystubs and update information, like a change of address or contribution levels. Otherwise, any changes or issues will have to go through your accounting department. Ask the provider to demo their employee portal to gauge how easy it is to access and update.

Finally, the payroll system you choose has to be secure. Make sure cybersecurity measures are part of the conversation when looking at systems, including encryption protocols and multi-factor authentication to access the system. For additional tips, check out 5 more benefits your provider should deliver.