AllianceHCM Payroll, Tax and HR

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.

Smiling man wearing an apron prepares to slide a pizza into a restaurant oven.

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.

Restaurant patron picks up the check on a handheld payment device.

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

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.
Tip Jar

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.

Make life easier with systems that integrate

Your restaurant likely relies on a handful of systems to run efficiently–from point-of-sale (POS) and benefits management systems to recruiting and timekeeping systems. Make sure your systems are integrated with each other so that you’re not losing time and effort by doing tasks twice or updating data in multiple places. See how AllianceHCM integrates with systems to save our clients time and money.


See more of our 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.

A young woman works on her restaurant’s payroll on her office computer.

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.

A restaurant manager has a conversation with a member of the waitstaff.

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.

A cafe worker prepares salads in a large catering kitchen.

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.

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.

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.

Test drive our powerful Human Capital Management solution!

Take AllianceHCM payroll and tax solutions for a spin today. See for yourself why our clients are so satisfied with our human resources solutions and service.

Are you tired of spending countless hours managing your payroll and tax processes? Look no further than AllianceHCM’s exceptional payroll and tax solutions. Our dedication to providing top-notch human resources solutions and services has been our trademark since 1989.

Support and empower your employees and reduce the workload for your HR team with MyPay. Let us show you why our clients rave about our comprehensive payroll and tax solutions. Say goodbye to tedious tasks and hello to a streamlined HR experience with the AllianceHCM employee self service site.

AllianceHCM is the payroll provider of {company}. Please contact your employer (even if you're not employed there anymore) directly for assistance with logging in, resetting your password, questions about your paystub, accessing your W2, benefits or any direct deposit questions etc. We have strict security rules in place and cannot access or share employee information with anyone other than your employer's AllianceHCM administrator.