8 Best Restaurant Payroll Software for Small Businesses

8 Best Restaurant Payroll Software for Small Businesses

Looking for the best restaurant payroll software? My guide compares features and pricing for the top 8 solutions for paying workers, taxes, and tips on time.

Written By
Ray Delucci
Ray Delucci
Published: May 22, 2025
Updated: Sep 1, 2025
29 minute read
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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. 

  • Square Payroll: Best for bars and cafes using Square POS
  • Gusto: Best restaurant payroll software for essential features
  • 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 scoreStarting monthly priceSpecial contractor-only payrollMultistate payrollHealth benefits available in 50 states
4.64/5$6 per employee + $35 base fee$6 per contractor monthly
Visit Square Payroll
4.51/5$6 per employee + $49 per month$6 per contractor + $35 base fee monthlyIncluded in higher tiers
Visit Gusto
3.96/5$50 per month + $6.50 per employee monthly$15 monthly for 20 contractors; plus $2 per additional worker
Visit QuickBooks Payroll
3.85/5$6 per employee + $39 base fee2
Visit Homebase Payroll
3.84/5$5 per employee + $39 base fee3
Visit Paychex
3.81/5$4 per employee + $20 base fee4
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 worker5
Visit ADP Run

1At the time of this writing, QuickBooks was promoting 90% off for three months, for a starting price of $5 per month plus $6 per employee per month.

2Homebase’s payroll features are only available as an add-on for the price above. Homebase plans range from $0 to $120 per month per location.

3Based on third-party sources

4Doesn’t include tax filings

5Based on a quote I received for ADP Run’s Enhanced plan.

Square Payroll: Best for bars and cafes using Square POS

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Gusto: Best payroll software for restaurants with essential features

QuickBooks Payroll: Best for independent operators paying contractors

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Homebase Payroll: Best for hourly workers

Paychex: Best for restaurants needing expert payroll support

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SurePayroll: Best for affordable payroll for DIY tax filings

OnPay: Best for client support & delegating payroll tasks

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ADP Run: Best for scaling fast-growing restaurant businesses

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. 
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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.
  • Ease of use: Due to the sensitive nature of payroll management, it’s in your restaurant’s best interest to have payroll software that is easy and efficient to use. This gives your key stakeholders confidence and ensures your practices are compliant and on time.

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)

Most restaurants use a payroll system that integrates with point-of-sale (POS) payment processing systems. A POS can help with order processing, payments, and inventory control. Because of this, a POS that offers a payroll option, like Square, is ideal for restaurants.

According to recent statistics, payroll and labor costs for restaurants should not exceed 25%-30% of their total revenue. For every $10 generated, no more than $3 should be spent on payroll, benefits, and required taxes. For this reason, depending on the size of your restaurant, it is important to keep payroll costs low.

The best payroll software for small businesses depends on your business’s size, the payroll features you are looking for, and your budget. Gusto, for example, is the best restaurant payroll software for essential features. Meanwhile, Square Payroll is ideal for bars and cafes already using Square POS.

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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 a top 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.

Ray Delucci

Ray Delucci is a graduate of The Culinary Institute of America with a Bachelor’s in Food Business Management. He has experience managing restaurants in New York City, Houston, and Chicago. He is also the host of the Line Cook Thoughts Podcast, where he interviews and shares the stories of foodservice workers. Ray currently works in food manufacturing and food product development.

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