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Best Ways To Keep Track of Your Restaurant’s Payroll

Best Ways To Keep Track of Your Restaurant’s Payroll

Owning a restaurant is a gratifying and enriching endeavor. However, ensuring that each aspect of your establishment is taken care of and adequately accounted for is challenging. After all, you’re in charge of everything, from item inventory and maintenance to your staff’s payroll. Let us walk you through the best ways to keep track of your restaurant’s payroll. This way, you can simplify one of the more complex processes owning a restaurant entails and enjoy the other parts of your restaurant that you love the most.

Ensure You’ve Done the Proper Paperwork

Ensuring that you can properly track your restaurant’s payroll has a lot to do with filling out paperwork and meeting legal requirements. Ensuring that your business is compliant with federal and state payroll laws is crucial to your success. During this process, you’ll do everything from registering your business as an official employer to signing up for worker’s compensation insurance and filing an employer identification number for your restaurant.

After hiring staff, you’ll need to account for documents, such as W-4’s and I-9’s, that protect you and your employees. So it’s wise to research your state’s specific guidelines for setting up payroll and make sure you thoroughly document everything. This ensures the legitimacy of your business and helps you keep track of your staff’s set wages.

Open a Payroll Bank Account

Owning a restaurant often means that you’ll run into unexpected expenses, like repairs and maintenance. So things can quickly get dicey when you have to split the money in your primary business account between restaurant upkeep and employee wages. For this reason, it’s wise to set up a payroll banking account, an account specifically for collecting and sending wages to your staff.

Doing this will help you circumvent mistakes that often happen when you pull from larger accounts. Just as well, it will keep all your payments in an easily accessible and convenient spot that you can refer to should there be wage discrepancies between you and your employees.

Select the Best POS System for Your Payroll Needs

Lastly, once you have your payroll set up, it’s time to take things up a notch with an upgraded POS system. While POS systems of the past might not have had the features to integrate payroll processing software into their operations, some of the more modern options do.

So when choosing a restaurant POS system, it’s crucial to select one capable of merging its precise tracking system with the information on your payroll. Doing this allows the system to track wage payments and tip distributions with the most accuracy. This ensures that your wages are always accurate and consistent. Further, it also benefits your employees, as everyone is guaranteed their fair share.

Making sure your restaurant runs smoothly can be quite a feat. However, understanding how to keep your payroll practices legitimate, efficient, and accessible can help simplify the process. So when it’s time to register your business and pay your employees, we hope you refer to our quick guide on the best ways to keep track of your restaurant’s payroll.

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