Running a restaurant, hotel or catering business is hard work and requires long hours. Add the day-to-day tasks of managing shift changes, multiple locations and job types, tips and legal requirements — and there just aren’t enough hours in the day. We can help you find time again with easy-to-use solutions, so you can focus on what matters most — your business.
We talk with our hospitality and restaurant clients about their day-to-day challenges and combine their input with our industry expertise. The result? Solutions that can help you:
ADP’s restaurant payroll is compatible with time and attendance programs so you can:
Track hours worked, manage time-off requests and seamlessly integrate with payroll.
Make informed decisions using intelligent data analysis tools, and access benchmarking data from over 40 million employees. Then compare your organization to others in your industry by location, role, size and more. Use these insights to answer questions such as:
Learn about other data analytics and benchmarks available to you by reading about ADP® DataCloud.
Join the growing community of businesses leveraging ADP’s powerful technology, expertise and insights.
Extended Stay America 1,000+ Employees Hospitality/Restaurant Charlotte, NC
Sky Chefs 1,000+ Employees Hospitality Irving, TX
Powerplant Superfood Café 1-49 Employees Hospitality/Restaurant Los Angeles, CA
What ADP does for small business owners is allow us to spend time on marketing to get more business as opposed to doing payroll. So often small business owners say, 'If I just do it myself, I don’t have to pay anyone else.' But time is money and with ADP, I feel I save a lot of money because I don’t spend as much time on the things they do for me.
40 Dreams Catering
ADP saves me money because I don’t have the tax penalties we were running up. I have confidence, which really does translate to less stress.
Powerplant Superfood Café
In some cases, employers in the restaurant industry can apply tips to satisfy a portion of their minimum wage obligation. This is known as a tip credit and it’s calculated by subtracting the minimum cash wage from the federal minimum wage. If employees don’t earn enough tips to reach the minimum wage, then the employer is required to pay them the difference. Note that state minimum cash wage and maximum tip credits may differ and certain states prohibit tip credits.
Restaurants, like other businesses, are required to keep payroll records, such as pay statements, time records, Forms W-4, etc. In addition, restaurant employees must track their daily tips and provide their employer with a monthly tip report for any month in which their total tips received was $20 or more. They may use IRS Form 4070 for this purpose or custom forms and electronic systems supplied by their employer.
Employees are entitled to keep any tips they receive unless they’ve entered into a valid tip-sharing, or “tip pooling,” arrangement with their coworkers. The Fair Labor Standards Act (FLSA) doesn’t limit contributions to tip pools, but an employer must notify employees in advance if there is a minimum contribution requirement. Additionally, employers may only claim tip credits on the amount of tips an employee actually receives from the tip pool.
Yes, employers must pay their portion of Social Security and Medicare taxes, as well as unemployment tax, based on their employees’ earned wages and total reported tips.
Anyone who regularly receives more than $30 per month in tips is considered a tipped employee. Examples include bartenders, waiters, valets and gaming dealers. More recently, the federal government has allowed other types of workers, such as janitors and dishwashers, to begin receiving tips through tip pools, provided certain requirements are met. Some states, however, still restrict tip pooling agreements only to those who customarily receive tips.
Let's find the perfect solution for your business.