The Benefits of Payroll Outsourcing for Restaurants
By Leigh Wilson, Senior District Manager, CompuPay
Employee payroll is a sensitive issue in any field. As a restaurant manager or owner, you want your employees to trust that you will pay them what they earn, in a timely manner, with minimal to no mistakes. The complex laws governing restaurant employees' wages and tips paired with the already difficult process of running a successful business can make doing payroll a difficult and time consuming task. For improved accuracy and time-saving services, many restaurant owners utilize a payroll outsourcing service.
A payroll outsourcing service can take responsibility of many financial and legal matters regarding your restaurant's payroll. They provide restaurant owners with the peace of mind of knowing that their employees’ payroll and tax payments are taken care of. In fact, a payroll company can do the following tasks and more:
1. Calculate payroll checks
2. Print and deliver checks
3. Handle direct deposit
4. Calculate and pay tax payment(s) for each employee and ensure compliance
5. Print W2 forms
6. Provide specialized restaurant reporting such as tip allocation tracking, FICA tip credit tracking, tip reporting, etc.
7. Provide employee background screening
8. Stay up to date on the latest payroll and tax regulations
Payroll Service Costs
Pricing will vary from one payroll service to another. Pricing is based on several factors such as pay frequency, number of employees, services selected, etc. Some service providers charge a base fee for all services, as well as fees for each check issued, usually anywhere from $.80 to $2.00 per check. For additional services, such as direct deposit and tax filing, there are usually additional fees. Some payroll services, such as CompuPay, bundle the most commonly used services for one, low price. In order to avoid paying excessive fees, consider the services you are most interested in for your business, and always inquire about any add-on fees.
Choosing a Payroll Outsourcing Service
It is extremely important to pay your people accurately, efficiently and in a timely matter. Therefore, it’s in your best interest to avoid taking any risks when selecting a payroll provider. Be sure you are choosing a reliable, reputable company who will not charge you hidden fees or be unresponsive when faced with errors or payroll issues. Follow these guidelines when choosing a payroll company for your restaurant operation:
Research your options
Search the web. Ask other restaurant owners. See what options are out there and thoroughly research each company you are considering. Other restaurant owners with a comparable number of employees can give you sound comparisons and good advice.
Interview multiple payroll companies
Ask questions of the companies you are considering. Familiarize yourself with what services they offer and how those compare to your business needs. Ask about how they transmit their data information (i.e. over the phone, PC or Internet) and their customer service model. Do not be afraid to ask for references. Consulting with current clients can result in useful information about the payroll service provider's reputation, efficiency and accuracy.
Inquire about customer service
Forging good working relationships with your payroll service providers is critical. Will you have a dedicated account representative? What are their hours of operation? Inquire about who will consistently handle your business needs should any issues arise. You may also want to ask about the employees' experience levels and whether they are certified with FPC (Fundamental Payroll Certification) or CPP (Certified Payroll Professional).
About Leigh Wilson
Leigh graduated from Clemson University with a BS in Business Communications and Minor in Marketing. Leigh has been with CompuPay for over 7 years and is the Senior District Manager for the Manhattan office. He has served on the Board of Directors for the Hoboken Rotary, President and Director of BNI (Business Networking Intl.), and is a founding member for the New York City Hospitality Group. He has spent his career finding ways to save his prospects money from their current providers- while upgrading their existing packages for a better solution. His primary focus has been dealing with the hospitality industry in New York City and around the country.