Running a restaurant is already a high-stakes game. Between juggling food costs, staffing headaches, and the constant hustle of keeping customers happy, payroll can feel like just another box to check. The reality? Payroll isn’t something you can afford to wing. The smartest operators know that a rock-solid payroll system with a trusted payroll service provider keeps everything running smoothly, legally, and without unwanted surprises.
1. Misclassifying Employees
Misclassified employees don’t get the wages or benefits they’re legally owed. The IRS loves handing out penalties for this mistake.
2. Overtime Errors
Overtime mistakes are a ticking time bomb. Underpaying overtime can trigger wage disputes and lawsuits.
3. Tip Credit Violations
Restaurants that use tip credits to meet minimum wage requirements often get tripped up by complex regulations. Know your federal, state, and local tip laws like the back of your hand - or let a payroll expert handle it for you.
4. Ignoring State and Local Wage Laws
Minimum wage laws aren’t the same everywhere, and they change often. Missing state-specific rules on overtime, meal breaks, or sick leave can land you in hot water.
5. Payroll Tax Mistakes
Payroll taxes aren’t optional, but too many restaurant owners make costly missteps when withholding, reporting, and submitting them.
6. Poor Payroll Recordkeeping
Keeping detailed payroll records, is vital. If an employee disputes their pay - or the Department of Labor comes knocking - you’ll need airtight documentation.
FIX THESE PROBLEM LIKE A PRO: PARTNER WITH A TRUSTED PAYROLL & HR PROVIDER
If you’re handling payroll manually or relying on outdated or disconnected systems, you’re taking unnecessary risks. The best restaurant operators don’t just work hard; they work smart.
COASTAL PAYROLL CAN BE A GAME-CHANGER
As one of the fastest growing payroll and HR companies in the country for the last 18 years, we’ve built our entire business on exceptional customer service. We believe in taking great care of people, as evidenced by our 71 NPS client satisfaction score and 92% client retention rate. Let’s change the game for your restaurant business.
You can minimize the time spent on these tasks, while improving accuracy and boosting engagement, with the isolved technology platform. This connected HCM solution goes beyond the typical HCM to seamlessly connect and manage your workforce while adapting to the future of work.
Features of isolved with Coastal Payroll include:
• Tips Management, including tax credits, shortfall and allocation tracking
• Overtime Management, including state and city requirements
• Workers’ Comp - Pay As You Go
• Manage food handler permits
• ACA Compliance
• Labor Dashboard - reduce labor costs
• Forms 8027 and 8846
• Executive Dashboard - Important data at a glance for your managers and supervisors
