Many restaurateurs will agree that payroll is a complicated aspect of running a successful restaurant. That is why it is essential to understand your personnel structure and how tips and wages affect your payroll system.
Apart from that, when managing a restaurant payroll, you have to deal with all the regulatory requirements, which can be frustrating. Also, when payroll management is mismanaged, cash shortages can happen.
With that, here are some essential responsibilities for restaurant owners.
Pay attention to payroll deadlines
To prevent late fines and interest costs, it is critical that you are informed of the dates for depositing payroll taxes to federal, state, and local agencies. Your employees will undoubtedly expect you to pay them on time.
Make sure your employees are classified appropriately
It is critical for tax purposes that you appropriately classify employees, such as independent contractors, seasonal employees, consultants, and the likes. This will also help you ensure that overtime pay is calculated and reported accurately.
Be aware of how tips affect payroll
If the net amount reported for all tipped employees is less than 8% of total revenues for that pay period, the employer is required to distribute tips among the eligible employees to get their reported tips up to the 8% requirement.
FICA tip credit
Restaurant operators can use the Federal Insurance Contribution Act (FICA) tip credit to minimize labor costs. Remember that a waiter or waitress who earns more than the minimum wage in tips can save your restaurant money on direct wages and payroll taxes, so take advantage of this credit whenever possible.
Data entries should be checked twice
Before processing, request that your payroll processor double-check the hour and wage entries. You should also double-check the payroll reports you receive from the payroll processor to ensure that the hours and wages appear to be correct. Incorrectly entered hourly wages or staff hours might cost your company millions of dollars.
To learn more about important tasks of restaurant owners in managing payroll, visit Entrust Payroll. Also, Entrust Payroll can give you ideas on saving time and effort in manufacturing services.
Visit Entrust Payroll today at www.entrustpayroll.com/.
