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The Tip Share

128 EpisodesProduced by RASI - Restaurant Accounting Services Inc.Website

A Restaurant Industry Podcast


What to Consider When Setting Up Payroll for Your Restaurant

You may be asking, how does payroll work? That is, what should payroll look like for a restaurant? We’ll start with the basics. What is payroll? Payroll is the business process of regularly paying out all your wage, payroll tax, and benefit liabilities to employees. We’ll spell those out: wages are employee earnings, payroll taxes are the percent of earnings dedicated to taxes, particularly FICA (social security) and MEDFICA (medicare). Benefits are any payments you make on behalf of your employees in a manner specified by their employment contract, such as a contribution to a health savings account (HSA).

So far, so good. But how should operators process payroll in the context of a restaurant? That’s up next. Here’s how to perform restaurant payroll.

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