Key Ingredients Needed for Restaurant Payroll Software

Your restaurant needs payroll software. In fact, restaurant payroll software is just as important as your menu and a good location.

Restaurant payroll software simplifies some of the biggest challenges in the food service industry, including streamlining and automating the calculations for overtime, tips, and seasonal hiring. Simple mistakes can cause compliance issues, disgruntled staff, and liability.

Problems addressed by restaurant payroll software

Payroll tackles lots of common restaurant problems by combining scheduling and timekeeping together. Software can’t prevent personality conflicts between kitchen and waitstaff. Even so, payroll software can ‘86’ some of your managers’ biggest headaches:

• Late payments
• Inaccurate payments
• Bad shift management
• Legal liability (financial or labor)
• Time theft
• Human error
• Wasted time (routine tasks and corrections)

Must-have features in restaurant payroll software

As new technology continues to evolve, NOW is the right time to invest in restaurant payroll software. Older systems tend to have more security gaps. Unfortunately, there’s reason to expect a surge of ransomware attacks powered by AI. Staying resilient and competitive means keeping up with changes in technology.

Ready to shop for payroll software for your restaurant? Look for these essential features:

Payroll & Tax

Automate the payroll process for employees with different pay rates and hours. Calculate withholdings for taxes and deductions like garnishments. Payroll and tax calculations must be quick and reliable. Many of your waitstaff (like most Americans) are living paycheck to paycheck. A delayed paystub or unexpected tax debt could make it hard to pay rent.

Benefits Administration

Healthcare benefits for servers? The National Restaurant Association says that health benefits can be a game-changer for recruiting and retention. Waitstaff over 25 years old are even more interested in benefits.

Alternatives like telemedicine programs cost less than traditional insurance. Telemedicine still gives access to services like mental health counseling. As restaurant pay rises above $15 per hour, traditional benefits become more feasible for full-time workers.

Human Resources

Turnover costs more than $5,000 per restaurant worker.

Human Resources improves retention by making employees feel heard and valued. HR staff typically handles recruitment, onboarding, and employee relations. Use integrated HR software for payroll, and you can let your employees send and receive messages. Send friendly reminders about open enrollment and other deadlines.

Time & Attendance

How many hours do managers waste making and re-writing schedules on paper? Time and attendance software includes easy schedule builders and customizable clocks. Make sure shifts (and key positions) are covered by flagging and categorizing workers. Set your own thresholds for automatic overtime notifications.

Restaurant payroll software needs to be integrated with time and attendance. That way, you can pay staff for the hours they worked, not just the scheduled hours.

Learning Management

A Learning Management System helps with both onboarding and retention. New hires need to learn the ropes, and your LMS can allow each individual to learn at their own pace. Let them repeat the material as needed. For experienced staff, you can make advanced courses available remotely to improve skills and ensure compliance.

Performance Management

Employee performance evaluations make it easier to manage underperforming employees. HR software can automatically track Key Performance Indicators. Record tardiness and absenteeism without adding extra work for managers. Portals can facilitate anonymous feedback and keep records of performance reviews.

Employee Self-Service Portal

The self-service portal is a huge part of restaurant payroll software. Portals should be mobile-friendly so that staff can easily check their scheduled hours. Robust scheduling software allows employees to swap shifts with manager approval. 

The portal provides centralized access to everything an employee needs. Provide links to LMS training, pay stubs, and documentation for taxes.

Choosing the Right Restaurant Payroll Software

Make sure to compare your options for payroll providers. Beyond sleek graphics and big promises, you need a reliable provider that handles transfers accurately. Have you encountered security concerns or repeated errors? Follow our complete guide for switching to a new payroll provider. 

We aren’t unbiased, but we believe Netchex Payroll Software has all of the best features for restaurants. We helped one restaurant group manage several locations of Zaxby’s chicken restaurant. They upgraded from QuickBooks to a single-source platform for onboarding, payroll, and recruiting. That’s just one of our many case studies in the restaurant industry. The right provider should help your restaurant take advantage of these must-have payroll features.

Discover how Netchex can help improve your payroll processes with industry-specific restaurant payroll software: