The best restaurant payroll software helps restaurant operators and managers process employee salaries accurately and on time while offering tools to manage payroll taxes, monitor attendance, and track tips.
It must also be easy to use, have good client support, and efficiently handle the complexities of paying restaurant staff. Pricing is also important, especially for small establishments, so a reasonably priced plan with unlimited payroll runs is ideal. Scroll through my evaluation of the eight best restaurant payroll services to find your next solution or see how your current solution stacks up.
- Gusto: Best overall restaurant payroll software
- Square Payroll: Best for bars and cafes using Square POS
- QuickBooks Payroll: Best for hiring contractors
- Homebase Payroll: Best for hourly workers
- Paychex: Best for restaurants needing expert payroll support
- SurePayroll: Best affordable payroll for DIY taxes
- OnPay: Best for client support and delegating payroll tasks
- ADP Run: Best for scaling fast-growing restaurant businesses
Best restaurant payroll software compared
| My score | Starting monthly price | Special contractor-only payroll | Multistate payroll | Health benefits available in 50 states | |
 | 4.64/5 | $6 per employee + $49 base fee | $6 per contractor + $35 base fee monthly | Included in higher tiers | 38 states + Washington, D.C. only |
| Visit Gusto | |||||
 | 4.6/5 | $6 per employee + $35 base fee | $6 per contractor monthly | ✓ | ✓ |
| Visit Square Payroll | |||||
 | 3.96/5 | $6 per employee + $42.50 base fee | $15 monthly for 20 contractors; plus $2 per additional worker | ✓ | ✓ |
| Visit QuickBooks Payroll | |||||
 | 3.85/5 | $6 per employee + $39 base fee | ✕ | ✓ | ✕ |
| Visit Homebase Payroll | |||||
 | 3.84/5 | $5 per employee + $39 base fee1 | ✕ | ✓ | ✓ |
| Visit Paychex | |||||
 | 3.81/5 | $4 per employee + $20 base fee2 | ✕ | ✓ | ✓ |
| Visit SurePayroll | |||||
 | 3.81/5 | $6 per employee + $49 base fee | ✕ | ✓ | ✓ |
| Visit OnPay | |||||
 | 3.76/5 | $81.66 weekly to pay 25 workers + $1.89 per additional worker3 | ✕ | ✓ | ✓ |
| Visit ADP Run | |||||
2Doesn’t include tax filings
3Based on a quote I received for ADP Run’s Enhanced plan.
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Gusto: Best overall payroll software for restaurants
Pros
Cons
Who should use it
Gusto has all the essential features for paying restaurant staff, calculating and filing payroll taxes (federal, state, and local), tracking attendance, managing benefits, and onboarding employees, making it my top pick overall.
It can generate and file W-2 and 1099 forms automatically. Its full-service payroll covers all 50 US states and includes tip reporting, direct deposits, and flexible payroll capabilities, such as multistate payroll processing and multiple pay options, rates, and schedules.
The platform also allows you to enter cash tips that staff receive during work hours to ensure tax on tips is calculated appropriately. This can be a huge time-saver and avoids manually doing these calculations.
Why I like it
In my evaluation, Gusto earned an overall score of 4.64 out of 5. It received perfect marks in nearly all criteria, including pricing, given its transparent fees, multiple plan options, unlimited pay runs, and a reasonably priced starter plan.
However, Gusto’s pricing isn’t as affordable as Square Payroll, SurePayroll, and Homebase Payroll. It also has limited health insurance coverage, and while its interface is intuitive, it isn’t all customizable.
Users on third-party review sites like Gusto because it’s easy to integrate payroll into the workflow for any size business. They also raved about the autosync and tax payment features as going above and beyond other products.
- G2: 4.5 out of 5 based on 2,760 reviews
- Capterra: 4.6 out of 5 based on 4,097
When to use an alternative
Gusto may have next-day direct deposits, but this is available only in its higher tiers. For fast processing timelines that don’t require plan upgrades, I recommend QuickBooks Payroll, as its starter Simple plan comes with next-day direct deposits (same-day for premium plans). Square Payroll also offers instant payouts through its Square Payments solution.
If offering benefits is important to you and your business is located in one of the states where Gusto’s health insurance isn’t available, consider any of the providers in this guide, except Homebase Payroll, which doesn’t have benefits plans.
- Simple: $49 per month + $6 per employee monthly
- Includes full-service single-state payroll, including W-2s and 1099s, basic support, employee profiles and self-service, basic hiring and onboarding tools, Gusto-brokered health insurance administration, employee financial benefits, payroll and time-off reports, custom admin permissions, basic PTO policies and holiday pay, and integrations for accounting, time tracking, expense management, and more
- Plus: $80 per month + $12 per employee monthly
- Everything in Simple, plus Full-service multi-state payroll including W-2s and 1099s, next-day direct deposit, advanced hiring and onboarding tools, PTO management and policies, time tracking and project tracking, time kiosk, scheduling, expenses and reimbursements, workforce costing and custom reports, and team management tools
- Premium: $180 per month + $22 per employee monthly
- Everything in Plus, plus a dedicated customer success manager, access to an HR resource center, compliance alerts, access to certified HR experts, a health insurance broker integration, and more
- Contractor-only plan: $35 per month + $6 per contractor
- New clients get no base fee for the first six months.
- Includes unlimited contractor payments across all 50 states, four-day direct deposit, 1099-NECs at the end of the year, new hire reporting (if required in your state), and global contractor payments
Add-ons
- State payroll tax registration: Pricing varies per state
- Global contractor payments: Pricing shown before payment
- Gusto Global EoR services: $699 per employee per month
- Next-day direct deposit: $15 per month + $3 per employee monthly*
- Time tracking: $6 per employee monthly*
- Priority support: $30 per month + $3 per employee monthly**
- HR resources: $50 per month + $5 per employee monthly**
- Performance: $3 per employee monthly*
- Priority support and HR resources: $8 per employee monthly**
- Health insurance broker integration: $6 per eligible employee monthly
*This is available for the Simple plan holders; free for Plus and Premium tiers
**For the Simple plan only; different add-on packages for Plus and free for Premium
- Efficient time tracking and workforce management tools: Aside from monitoring your employees’ and contractors’ time through its system or the Gusto Wallet, Gusto offers project tracking and workforce costing tools. You can create custom PTO policies and then send and approve time-off requests online.
- Multiple pay options: With Gusto, employees are paid through manual checks, pay cards, or direct deposits. The standard direct deposit timelines are two and four days, but subscribing to Gusto’s higher tiers gets you a next-day option.
- Comprehensive employee benefits options: With Gusto, you can access both standard and nonstandard benefits choices, such as retirement, medical, dental, and college savings plans. The only drawback is the limited coverage of its health insurance options (available in only 38 states, plus Washington, D.C.).
- Solid HR solutions and services: Gusto helps you avoid expensive compliance mistakes through its team of HR and tax experts, whom you can contact whenever you need them, provided you get its Premium option. Hiring is also easy with Gusto’s job postings, applicant tracking, and onboarding solutions.
Square Payroll: Best for bars and cafes using Square POS
Pros
Cons
Who should use it
If you’re already using Square POS for your restaurant, adding Square Payroll is simple. It offers a low-cost full-payroll service that includes unlimited pay runs, automatic payroll tax calculations, tax filings and payments, and multiple pay options, such as direct deposit, check, and Cash App.
In addition, you get a better value if you use Square POS in your restaurant since this software integrates with it directly. Plus, you get free access to Square’s time card integration, allowing you to track employee attendance seamlessly and easily.
Why I like it
Score-wise, I gave Square Payroll an overall rating of 4.6 out of 5. Based on my evaluation criteria, the software’s standout features are its affordable flat-rate pricing and robust payroll functionalities, which include tip management and reporting.
You can import credit card tips from the Square POS and let its restaurant tip-out functionality pool and split the amount among employees based on the number of hours worked in a pay period.
However, Square’s payroll and customer support are only available by phone and email on weekdays, from 6 a.m. to 6 p.m. Pacific time. In addition, if you’re not yet a Square client, speaking to a customer representative may be difficult because of the occasional long wait times.
Users also like Square. Although reviews were much lower than typical, Square Payroll scored above a 4 out of 5 across the board. Users like the integration with its POS product, how simple it is to convert time cards into payroll, and automated tax processing.
- G2: 4.2 out of 5 based on 31 reviews
- Capterra: 4.7 out of 5 based on 615 reviews
When to use an alternative
If you aren’t a Square user but still want fast payments, try QuickBooks Payroll. It offers next-day direct deposits and even a same-day option, provided you get its higher tiers. Gusto, Paychex, and ADP are good alternatives if you’re looking for full-service payroll with a wide suite of HR solutions to manage the entire employee lifecycle.
Full-service payroll: $35 + $6 per employee monthly
- Includes unlimited pay runs, payroll tax filings, year-end tax reports, and access to employee benefits
Contractor-only payroll: $6 per contractor monthly
- Square POS integration: Square Payroll seamlessly integrates with Square POS (one of the best restaurant POS systems), making it easy to track and import employee time cards, including tips and commissions data, for pay processing.
- Online tax filing and reporting: Square Payroll files quarterly and annual taxes automatically and prepares and files W-2s or 1099s. This is unlike Paychex and ADP, which charge fees for some of their payroll tax services. QuickBooks Payroll may not have add-on fees to file taxes for you, but you have to get its highest tier if you want automated local tax filings.
- Instant payments: While its standard direct deposit processing timeline is four days, if you accept payments via Square and have a Square balance, then you can activate its “Instant Payments” feature. This allows you to pay employees instantly via its Cash App, provided you have sufficient funds in your Square account.
QuickBooks Payroll: Best for independent operators paying contractors
Pros
Cons
Who should use it
QuickBooks has released a Contractor Payments package that is optimal for businesses with only contract workers. For $15 per month, you can process payments for up to 20 workers (plus $2 for each additional contractor), e-file 1099 forms, and pay contractors via next-day direct deposits.
Why I like it
Based on my criteria, QuickBooks Payroll received an overall score of 3.96 out of 5. Fast, unlimited pay runs, automated payroll tax calculations, year-end filings, and customizable reports earned QuickBooks Payroll high marks for payment features and reporting tools.
It also has one of the fastest direct deposit timelines, processing within 24 hours. This time frame is unlike similar payroll software providers that typically offer two- or four-day processing.
In addition, it has restaurant-specific functionalities that allow you to track time and manage tips. The platform allows you to enter cash and credit card tips into its system, enabling it to withhold the applicable taxes. For cash tips, it calculates taxes but doesn’t include the tip in the employees’ actual pay when they receive the money as cash.
User ratings are average on third-party review sites; however, users like that it’s easy to set up and offers good customer service. One user even said they like how QuickBooks Payroll allows their small business to have the look and feel of a big corporation.
- G2: 3.7 out of 5 based on 66 reviews
- Capterra: 4.4 out of 5 based on 926 reviews
When to use an alternative
Unlike the other payroll software for restaurants I reviewed, you have to upgrade to either a higher plan if you want QuickBooks Payroll to handle your local tax filings. Plus, if you already have an accounting system and don’t plan to switch to QuickBooks, you’ll find more reasonably priced options for paying employees with SurePayroll, Square Payroll, and Homebase.
Payroll Core + Simple Start: $42.50 per month + $6 per employee monthly
- Includes full-service payroll, automated taxes & forms, Auto Payroll, 1099 E-File & Pay, expert product support, next-day direct deposit, an employee portal, 401(k) plans, and team management tools
Payroll Core + Essentials: $57.50 per month + $6 per employee monthly
- Everything in Payroll Core, plus the ability to connect three sales channels, manage bills, enter time, and add three users
Payroll Premium + Plus: $92 per month + $9 per employee monthly
- Everything in Payroll Core + Essentials, plus the ability to connect all your sales channels, add five users, track project profitability, and track inventory
Contractor payments package: Starts at $15 per month for 20 contractors, plus $2 for each additional contractor
Includes next-day direct deposits, 1099 e-filings, and a contractor self-setup tool
- Fast direct deposits: Apart from next-day direct deposits, you can pay employees through same-day direct deposit at no extra cost, provided you subscribe to QuickBooks Payroll’s higher tiers.
Most providers on this list have a standard two-day processing time, although Square Payroll offers instant payments if you activate its instant payments feature and have funds in your Square account. - Tax penalty protection: QuickBooks will cover the penalty and interest for any payroll tax error for up to $25,000 a year, regardless of who made the mistake. But must purchase a higher plan for this benefit.
Experts will also represent you before the IRS and concerned agencies and will assist you in resolving the problem. No other providers on my list will offer to cover tax mistakes you make under any circumstances. - Seamless integration with QuickBooks Accounting: For businesses already using QuickBooks Online for their accounting needs, the direct integration between platforms makes QuickBooks Payroll a great option. With the click of a button, all payroll information can sync to your accounting system, making payroll and tax costs much easier to track.
Homebase Payroll: Best for hourly workers
Pros
Cons
Who should use it
Homebase Payroll is designed specifically for hourly teams, as it comes with essential scheduling and time tracking tools to help you manage your hourly workforce more efficiently. It offers job postings, applicant tracking, PTO management, new hire onboarding, and time clock apps.
The platform has added a payroll module to its suite of time tracking and scheduling solutions. Similar to Square Payroll, Homebase Payroll offers flat pricing for its easy-to-use pay processing solution, which includes automated payroll tax payment and filing services.
Why I like it
Homebase Payroll earned an overall score of 3.85 out of 5 in my evaluation. Its reasonably priced plan with flat pricing and robust HR tools contributed to its high scores (4 and up) in several criteria. However, the lack of online third-party Homebase Payroll reviews resulted in it getting a zero rating in my popularity criterion.
Homebase’s main platform ranks well among users on third-party review sites. Users like the scheduling and time tracking capabilities, as well as labor cost reporting. Others like the ability to cash out money early for the next check.
- G2: 4.3 out of 5 based on 159 reviews
- Capterra: 4.6 out of 5 based on 1,106 reviews
When to use an alternative
While Homebase Payroll is generally easy to use, it isn’t as simple to set up as most of the payroll software in this guide. It also only offers its two-day direct deposits to qualified companies.
If you don’t qualify, your direct deposit processing timeline will be four days. I recommend QuickBooks Payroll for fast payments that aren’t restricted to certain companies. If you prefer paper checks, ADP Run and Paychex can help you prepare them.
$39 per month + $6 per employee, per month:
- Requires purchase of Homebase’s main time tracking and scheduling platform, which has a free plan for one-location businesses and up to 20 employees
- Includes unlimited pay runs, payroll tax filings, year-end tax reports, new hire reporting, and access to scheduling and time tracking tools
- Access to basic scheduling and time tracking tools is available via the main platform’s free plan.
- Robust payroll plan: Homebase Payroll is the only payroll system for small businesses that I reviewed that’s affordably priced and comes with several HR features. You get hiring, onboarding, time tracking, and scheduling tools in addition to full-service payroll and automatic tax filing services.
- Early access to wages: Similar to Gusto and Square Payroll, Homebase Payroll offers an employee perk that grants your staff early access to wages. Your workers can transfer a portion of their salary to their bank account before payday to help cover emergency expenses.
- Time tracking integration: Because Homebase Payroll is a time tracking and scheduling app first, it seamlessly integrates with its payroll solution. This means you can schedule employees, track their time, and push it directly to payroll for processing.
Paychex: Best for restaurants needing expert payroll support
Pros
Cons
Who should use it
With Paychex Flex Select and Paychex Flex Pro, business owners get access to dedicated support representatives who can help with anything they need throughout the payroll process. This is a huge plus for business owners who want a DIY payroll approach but need expert support to feel confident.
You also get multiple pay options to process direct deposits, paper checks, and pay cards. Moreover, what sets it apart from other payroll providers is its pay-on-demand feature, providing your employees the option to access their earned pay (up to $500) before payday.
Why I like it
Paychex earned an overall rating of 3.84 out of 5 in my evaluation. It received high scores for payroll and HR features, primarily because it offers solutions for processing employee pay, managing payroll taxes, reporting tips, tracking attendance, onboarding new hires, and conducting background checks. Its platform even has employee performance and learning management tools.
Paychex averaged a 4.2 out of 5 across multiple third-party review sites. Users liked its analytics features and automated reporting capabilities. They also stated that its personalized customer service makes the product easy to use.
- G2: 4.2 out of 5 based on 1,587 reviews
- Capterra: 4.2 out of 5 based on 1,730
When to use an alternative
Paychex’s HR payroll platform may be too feature-rich for those only needing pay processing tools. If you don’t require learning management solutions and an employee handbook builder, try SurePayroll. Restaurants with small teams can benefit from the Full Service plan with tax filing support.
And, in case you only have up to 10 employees and prefer to file tax forms yourself (or have an in-house HR staff who can), SurePayroll has a low-cost “No Tax Filing” option.
Paychex Flex Select: $39 per month + $5 per employee
- Includes online payroll and tax filing services, direct deposits, new hire reporting, and financial wellness
- Pricing is based on third-party sources. You must contact Paychex for a custom quote.
Paychex Flex Pro: Custom-priced
- Everything in the Select plan, plus full-service payroll and tax filing services, check logo and signing services, garnishment payments, general ledger services, and access to a dedicated payroll specialist
Paychex Flex Enterprise: Custom-priced
- Everything in the Pro plan, plus onboarding, background checks, state unemployment insurance (SUI) services, performance management, document management, job costing and labor distribution, and an employee handbook builder
Paid add-ons:
- HR analytics
- Time and attendance
- Learning management system
- Retirement plans and readiness dashboard tools
- Workers’ compensation coverage
- Business insurance
- Benefits administration
- Group health benefits (FSA, HSA, and HR)
- COBRA
- Paychex integrations
- Dedicated payroll support: Paychex is the only restaurant payroll software provider I reviewed that assigns a dedicated payroll specialist to its clients. This is great if your in-house HR staff isn’t knowledgeable in handling pay processing and payroll tax filings.
- Paychex Voice Assist: Paychex offers a hands-off experience in processing, reviewing, updating, and submitting payroll. This voice-activated tool, which works on any Google Assistant-compatible device, has built-in verification and AI solutions for user authentication. You can start a new pay period, make adjustments, or continue a pay run that’s already in progress, without manually logging into your Paychex Flex account.
- Paychex Flex Perks: This digital employee benefits marketplace includes early access to earned wages, financial wellness solutions, and voluntary lifestyle benefits for employees to help them manage their personal well-being.
SurePayroll: Best for affordable payroll for DIY tax filings
Pros
Cons
Who should use it
SurePayroll, a subsidiary of Paychex, is designed specifically for small businesses and is more affordable than other restaurant payroll solutions on my list. Its low-cost “No Tax Filing” plan allows you to run unlimited payrolls for a monthly fee of $20 plus $4 per employee.
This is a great option for small businesses that can handle their own tax filings. Its full-service plan, which includes unlimited pay runs and payroll tax filings, costs $29 plus $7 per employee monthly.
Why I like it
SurePayroll earned an overall score of 3.81 out of 5 in my evaluation. The software earned high scores (4 and up) for pricing, HR tools, and reporting capabilities. It would have ranked higher on my list if it had pay-on-demand and built-in time tracking functionalities. Its low popularity scores, primarily due to fewer than 1,000 user reviews in G2 and Capterra, also decreased its overall rating.
Aside from unlimited pay runs, SurePayroll can help you manage restaurant-specific taxes and payments. It has Federal Insurance Contribution Act (FICA) tip credit reports for tracking and calculating how much you claim on annual business taxes. It even offers tip sign-off reports, which can serve as written proof that your workers’ tips have been declared and received.
From a user standpoint, SurePayroll ranked well on third-party review sites. Users like the competitive pricing and how easy it is to set up and use. Plus, they report accurate federal and state tax filings and how easy payroll is to run and check for errors.
- G2: 4.4 out of 5 based on 525 reviews
- Capterra: 4.2 out of 5 based on 300 reviews
When to use an alternative
SurePayroll doesn’t integrate with POS systems. If you’re a Square POS user, consider Square Payroll. Most other payroll software in this guide can connect with POS solutions if you’re a non-Square user.
Square Payroll, Gusto, ADP Run, OnPay, and Paychex are good options if you’re looking for multiple payment options, from direct deposits to manual checks. I recommend ADP Run for stress-free paycheck processing, as it offers check signing, stuffing, and delivery services.
- G2: 4.2 out of 5 based on 1,587 reviews
- Capterra: 4.2 out of 5 based on 1,730
When to use an alternative
Paychex’s HR payroll platform may be too feature-rich for those only needing pay processing tools. If you don’t require learning management solutions and an employee handbook builder, try SurePayroll. Restaurants with small teams can benefit from the Full Service plan with tax filing support.
And, in case you only have up to 10 employees and prefer to file tax forms yourself (or have an in-house HR staff who can), SurePayroll has a low-cost “No Tax Filing” option.
No Tax Filing: $20 + $4 per employee monthly
- Includes unlimited pay runs, four-day direct deposits, online pay stubs, and new hire reporting
Full-Service: $29 + $7 per employee monthly
- Includes unlimited pay runs, payroll tax filings, year-end tax reporting, two-day direct deposits, online pay stubs, and new hire reporting
Additional plans & solutions:
- Household Payroll Plan: $39 per month (includes one employee) + $10 per additional employee
- SureHR: pricing starts at $25 per month plus $5 per employee; includes live on-demand HR services from certified professionals
- 401K: pricing varies
- Workers’ Compensation: pricing varies
- Health Insurance: pricing varies
Add-ons:
- Local tax filing services: $9.99 per month
- Multiple state tax filings: $9.99 per month
- Stratustime integrated time clock: $5 per month + $3 per employee per month
- Integrate your time clock: $9.99 per month
- Accounting software integration: $4.99 per month
- Unlimited and automatic payroll runs: With SurePayroll, you can process employee payments as many times as you need — unlike ADP, which charges fees for every pay run. You can even set it to process payroll automatically.
This is a helpful option for those who don’t expect changes to their pay runs. It even handles payroll tax payments, quarterly filings, and year-end tax reporting for you, provided you subscribe to its Full-Service plan. - Multiple employee payment options: SurePayroll pays your hourly and salaried employees via direct deposits. It has check printing capabilities if you prefer paper checks.
- Customer support: You can easily contact SurePayroll’s support team through chat, phone, or fax. The provider’s customer service runs six days a week, Monday through Saturday, with extended weekday evening and weekend hours. Apart from ADP Run and Paychex, which provide 24/7 support across all plans, none of the software I reviewed offers live phone support on weekends.
OnPay: Best for client support & delegating payroll tasks
Pros
Cons
Who should use it
For those with in-house HR staff familiar with running payroll, OnPay allows you to delegate pay processing tasks and control payroll access through its six-level system permissions. None of the restaurant payroll services in this guide has system permissions that are as robust as OnPay’s. New clients even get set up and data migration support, including customization assistance for third-party software integrations.
What’s also great about this software is its restaurant-specific services that include automatic tip calculations and Form 8846 filings. If you’re a new restaurateur, it can even help you set up minimum wage tip calculations.
However, don’t expect to integrate your POS with this software. Its partner systems only include QuickBooks, Xero, QuickBooks Time, Deputy, and When I Work.
Why I like it
In my evaluation, OnPay earned an overall rating of 3.81 out of 5, with high scores (4 and up) in most of my criteria. It didn’t rank higher on my list because of its limited number of user reviews in G2 and Capterra (fewer than 1,000) and the lack of POS integrations.
Similar to Homebase Payroll and Square Payroll, OnPay offers flat pricing for its payroll and basic HR solutions, another reasonably priced payroll plan in this guide. It provides health benefits with coverage that extends to all US states (Gusto’s plans are limited to 38 states).
Although the number of reviews was low, OnPay received the highest marks for third-party reviews of any other provider on my list. Users love how feature-laden and easy-to-use the platform is, both on desktop and mobile devices. They also liked the live chat feature when they have questions, with instant responses.
- G2: 4.8 out of 5 based on 363 reviews
- Capterra: 4.8 out of 5 based on 442 reviews
When to use an alternative
If you want to provide employees early access to earned wages, OnPay lacks the pay-on-demand feature that Square Payroll, Paychex, and ADP Run offer. Similar to Homebase Payroll, two-day direct deposits are only for qualified businesses. I recommend QuickBooks Payroll if you want fast direct deposits. Its standard processing timeline is a next-day option.
$49 + $6 per employee monthly
- Includes payroll processing, multiple payment options, payroll tax management, onboarding and new hire reporting, PTO management, employee benefits, self-service portal, reporting tools, and third-party integrations
- Unlimited payroll runs: Like the other restaurant payroll software I reviewed, OnPay lets you run payroll for both employees and contractors as many times as you need and want without paying extra. You can also generate year-end W-2s and 1099s without paying a per-employee rate (Paychex and ADP Run charge extra for this).
- Multiple employee payment options: With OnPay, employees can get their wages through direct deposits, debit cards, and paper checks. While it offers both two- and four-day direct deposit options, you have to undergo OnPay’s risk assessment to determine the processing timeline that will apply to you.
- Essential HR tools: Streamline onboarding processes with OnPay’s in-app offer letters, online I-9 and W-4 forms, e-signature tool, and automated onboarding workflows. It handles state new hire reporting and lets you create custom checklists to ensure that incoming employees complete all the new hire requirements. If you need HR guides and legal templates, OnPay has an online HR resource library.
- Employee benefits: Unlike Gusto’s limited health insurance coverage (only 38 states and Washington, D.C., as of this writing), OnPay’s health plans are available in all US states. Employees can also access dental, vision, disability, and retirement plans. Further, OnPay can easily generate employee census data reports that you can use when requesting insurance quotes from carriers and benefits providers.
ADP Run: Best for scaling fast-growing restaurant businesses
Pros
Cons
Who should use it
ADP Run is ADP’s web-based payroll solution that’s ideal for growing businesses. With many different plans available, ADP can tailor its platform and offerings to best fit the current needs of your business as it grows and evolves. It has all the essential features to process employee wages, manage payroll taxes, onboard new staff, and complete federal and state new hire reporting.
The software also has a time and attendance management module for restaurateurs that includes basic tip reporting tools. You can use ADP Run to process credit card tips, enter cash tip amounts, and withhold the applicable taxes. It can also provide FICA tip reports.
Why I like it
In my evaluation, ADP Run scored 3.76 out of 5. Its feature-rich platform and analytics earned this software high ratings (4 and up) for HR, payroll, and reporting tools. While few restaurant-specific features are available, unlike Gusto and Square, ADP Run offers strong reporting features and timekeeping, which are equally important for all restaurants to function properly.
Third-party reviews praise ADP Run for its straightforward interface and easy payroll handling. They also say their customer service is always polite and helpful. Plus, since it assumes 100% liability for wrongdoing, users feel at ease that their payroll is compliant and accurate.
- G2: 4.5 out of 5 based on 1,749 reviews
- Capterra: 4.5 out of 5 based on 797 reviews
When to use an alternative
Before you decide to get ADP Run, note that, based on a quote I received, it’s the most expensive payroll solution on my list. If you have a limited budget, consider either OnPay, SurePayroll, Square Payroll, or Homebase Payroll, as they all offer reasonably priced plans and unlimited pay runs.
While ADP handles year-end reporting — W-2s and 1099s — it charges extra. If you want full-service payroll without paying add-on tax filing fees, I recommend the other restaurant payroll software in this guide, except for Paychex, which also charges extra for year-end filings.
Essential: Custom-priced
- Includes full-service payroll, tax filings and year-end tax reports, new hire reporting, and onboarding tools
Enhanced: $81.66 weekly to pay 25 employees, plus $1.89 per additional worker based on a quote acquired from ADP Run
- Essential plus check signing and stuffing services, SUI management, ZipRecruiter job postings, and background checks
Complete: Custom-priced
- Enhanced plus access to HR forms, an employee handbook wizard, and a dedicated HR support team
HR Pro: Custom-priced
- Complete plus online training programs, employee handbook creation assistance, and HR advisory services
- Efficient payroll and tax filing services: ADP Run offers automated payroll tax payments and filings in addition to its solid payroll tools. It also has built-in compliance tools that notify you of payroll errors.
- Multiple employee payment options: With ADP Run, you can pay your employees via direct deposit, paychecks, and the Wisely Direct Debit Card. It also offers secure paychecks with check signing and stuffing services. ADP will even deliver the sealed envelopes containing employee paychecks to your office so you can distribute them to your staff.
- Employee benefits: While retirement, health insurance, and workers’ compensation plans are paid add-ons, ADP Run’s starter Essential plan comes with employee discounts. Its partnership with brand-name products and local retailers allows it to provide special pricing and discounted rates, which you can offer as a perk to your workers. None of the providers in this guide has this type of benefit.
- Flexible plan options: In addition to ADP Run’s multiple tiers with full-service payroll and access to essential HR tools, ADP has a wide range of products that cater to growing businesses. It offers a PEO option, ADP TotalSource, for companies that need to outsource their payroll and HR administration completely.
How I evaluated the best payroll software for restaurants
I compared 14 reputable payroll providers that, apart from processing employee payroll, offer attendance management and restaurant-specific solutions, such as time tracking and tip reporting. I rated each on a five-star scale designed to assess restaurant payroll services, narrowing my list to the top eight.
- Pricing (20%): I looked at the monthly implementation costs, processing costs, setup, and year-end fees. Payroll providers with plans priced less than $50 for one employee were rated more favorably since they’re budget-friendly. I also considered whether each provider has transparent pricing, multiple plan options, and unlimited pay runs.
- Restaurant-specific features (15%): Time tracking features, tipped minimum wage features, tip reporting features, and POS integrations are incredibly important for restaurant owners and can play a huge role in finding the payroll provider that is right for them.
- Payroll features (15%): Automatic payroll runs, payroll tax filing, 1099 form preparation, manual check capabilities, and two-day direct deposits are some of the features that I consider essential payroll services. Providers also get a point if they offer attendance monitoring and restaurant-specific solutions, such as tracking employee time-ins and outs, plus managing tips.
- Expert review (15%): In this criterion, I use my expert opinion to assess whether the software’s ease of use and the width and depth of its payroll and HR tools are ideal for small business owners.
- Ease of use (15%): In addition to having a user-friendly and intuitive platform, payroll software that integrates with common POS and third-party systems is awarded extra points. Given that restaurants operate on weekends, I also prioritized providers that offer live phone support and a dedicated representative.
- HR features (10%): One of the top criteria is having access to a professional who can provide expert advice on compliance issues, including new hire state reporting and online onboarding. Following closely behind these is the capability to provide employee benefits plans and a self-service portal that allows your staff to view payslips and access tax forms online.
- Popularity (5%): I considered user reviews based on a 5-star scale; any option with an average of 4-plus stars is ideal. Also, any software with 1,000-plus reviews on any third-party site is preferred.
- Reporting (5%): Restaurants benefit more from customizable reporting tools, as they can easily create their own reports. Hence, providers that offer this functionality get extra points. Additionally, those that offer a selection of basic payroll reports are prioritized.
How to choose the best restaurant payroll software
Not all payroll software will be right for your restaurant business. When thinking about payroll options, consider your budget against the software’s scalability, support availability, and more.
- Budget: Budget may not be an issue if you are a large chain restaurant. However, keeping restaurant labor costs down will be essential for running a small cafe or restaurant. Consider an affordable payroll software that offers a wide range of options.
- Scalability: As your restaurant business grows, so should your payroll software. ADP offers the best scalability on my list; however, others may provide the tools you need as your company and employee base grow.
- Legal compliance: Software that handles tax processes for you is ideal. This ensures that the proper taxes, including tip tax, are taken out of each paycheck and reported to the correct government.
- Support: Having a dedicated representative may be key, especially for small restaurants. Make sure that the provider you use offers at least fast email communication. Phone and live chat support are ideal.
- Integration: Most restaurants use POS systems for customer payments. Payroll software that integrates with or includes POS systems (like Square) can help streamline your processes.
- Time management: Software that helps you manage employee schedules and time off, as well as payroll, will allow you to bring recorded time into your payroll for accurate processing.
The restaurant payroll services I reviewed offer tip payment processing, tax filing services, year-end tax reports, and full-service payroll for employees and contractors.
Frequently asked questions (FAQs)
The last bite
When looking for software that processes employee salaries and taxes, it’s important to consider whether it has industry-specific payroll features that fit your business’s requirements. For restaurants, you need a solution that offers payroll and tax processing, time tracking, HR support, and tip reporting functionalities to help restaurateurs maintain compliance. Platforms should also be affordable if you’re running small restaurants.
For these reasons, I chose Gusto as the best restaurant payroll software. It provides the greatest balance among features and offers a variety of tools that address restaurants’ needs. It also has an intuitive platform and a budget-friendly full-service payroll option.
