Payroll and HR Resources for Restaurants

AllianceHCM specializes in supporting restaurants big and small as they serve up the best for their clients.

We understand the intricacies of tipped, hourly, and salaried employees, as well as the unique workforce challenges that you face in the front and back of the house. Whether you have one restaurant or multiple locations, and whether you’re independent or part of a franchise community, you deserve a best-in-class human capital management (HCM) solution and support.

Here we’ve gathered resources specifically for restaurant owners and managers to make the best of their payroll and HR processes.

Tips, taxes, and restaurants

Does your restaurant deal with tips? And are you handling them correctly? Make sure you and your employees are using IRS Form 4070 and IRS Form 8027. Both forms relate to reporting income from tips, but they serve different purposes and are used by different parties.

Both forms play crucial roles in the administration and compliance of tax laws related to tip income, ensuring that both employees and employers report and pay the appropriate amount of taxes on tip income.

In addition to formal forms, the IRS requires both employees and employers to keep accurate records of tips received. Employees should keep a daily record of tips received, using Form 4070A, “Employee’s Daily Record of Tips,” or a similar document. Employers are required to maintain records of employee tips reported to them.

What are the differences between the Form 4070 and the Form 8027?

Take the worry and stress out of quarterly and year-end payroll tax forms. Instead, get a complete payroll tax management service powered by a team that will ensure every relevant form is completed, reconciled, and filed correctly so your payroll tax records are centralized and spotless.

	IRS Form 4070: Employee’s Report of Tips to Employer	IRS Form 8027: Employer’s Annual Information Return of Tip Income and Allocated Tips
Purpose	This form is used by employees who receive tips to report their tip income to their employer. It is particularly relevant for workers in industries where tipping is common, such as restaurants and hospitality.	This form is used by large food or beverage establishments (businesses that provide food or beverages for consumption on the premises) to report tips received by their employees and to allocate tips if necessary.
Requirements	Employees must report tip income of $20 or more received in a month.	This form is required from employers who operate large food or beverage establishments, typically defined as those who employ more than 10 employees on a typical business day.
Use	The information from Form 4070 helps employers fulfill their obligations to withhold the correct amount of federal income tax and both the employee and employer portions of Social Security and Medicare taxes.	Form 8027 helps the IRS ensure compliance with the laws regarding the reporting and taxation of tip income. It aggregates the tip income reported by employees and any allocated tips the employer may distribute to ensure employees are reporting their tips accurately.
Frequency of Submission	Employees are typically required to submit this form to their employers monthly.	Employers submit this form annually.

Tired of wrestling with tips?

We get it–dealing with tips can be a headache. That’s why we work with earned wage access (EWA) partners who can easily manage things like electronic tips, paying out at the end of shifts or on specific dates, digital tip distribution, and instant access to already earned pay on demand. Learn more about EWA integrations here.

Payroll basics for restaurants

Payroll at a restaurant can quickly become complicated. The right technology can make it easier to deal with the intricacies of a restaurant, and incorporating these key principles can make sure you’re compliant and paying your employees correctly.

HR basics for restaurants

Restaurants are unique ecosystems that may have different workforce priorities than other companies. However, there are foundational HR practices for restaurants that help every employee, from managers to part-time staff.

Free on-demand webinars

Hear from industry experts about hot issues in the restaurant space, from tax opportunities to recruiting and hiring. These speakers offer informed perspectives to give restaurant owners, operators, and managers ways to continually improve their work processes.

Tax Credits for Your Restaurants: Maximize your returns

Is your restaurant earning as much as it can from Work Opportunity Tax Credits? Learn about the WOTC program history and its standards, as well as best practices for successfully earning credits.

The Engaged Employer: Top Tips for Hiring and Retaining Employees

We know hiring and retaining employees in the restaurant and hospitality industry can be challenging. Get best practices for sourcing applicants, offering a modern and intentional candidate experience, and creating an engaging employee culture.

Mastering Compliance in Hiring New Employees

Hiring situations can be tricky, but you can unlock the secrets to seamless (and legally sound) employee hiring. Discover everything you need to know about conducting interviews, crafting job descriptions, and developing offer letters.

Schedule a test drive today

Let us show you why our clients rave about our comprehensive HR and payroll solution.