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Home Payroll and HR Resources for Restaurants

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?

	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.

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.

5 Tips for Efficient Payroll Management

There is no substitute for an efficient payroll management process. As a decision-maker in your organization, you understand the importance of accurate and streamlined payroll processes. On one hand, an employee payroll management system ensures on-time payments. This leads to satisfied employees, which bodes well for retention and trust. But efficient payroll management processes help a business function more effectively as well. This is because payroll information is always up to date, keeping everyone on the same page.

Payroll for Beginners: From Employee Classification to Overtime

Running a business can be daunting because of all the moving parts. If you have employees, then managing payroll can become a burden, but this guide simplifies payroll for beginners.

Payroll Tax vs Income Tax: Key Similarities and Differences

Understanding and dealing with the intricacies between payroll taxes vs income taxes can be overwhelming for employers and small businesses. When comparing payroll taxes vs income taxes, they may appear similar. However, each tax serves a distinct purpose within the tax structure.

5 Tips for Ensuring Payroll Security in Your Organization

With businesses relying heavily on electronic systems for payroll management, the risk of data breaches and payroll fraud looms. Protect your business and employees’ sensitive information with robust payroll security measures. Let’s explore the nature of payroll security and some practical tips to strengthen your payroll security.

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.

How to Support Restaurant Managers: 3 Effective Approaches

Press Releases How to Support Restaurant Managers: 3 Effective Approaches Managers at a restaurant working together and holding a tablet Supporting restaurant managers is crucial for the smooth operation and success of any restaurant establishment. Restaurant managers play a pivotal role in overseeing daily operations, covering everything from coordinating staff to managing various challenges that arise in the fast-paced restaurant industry.

Why Career Development Plans Are Critical for Retaining Employees

A career development plan is a tool for helping workers achieve their professional goals. They can be used when you onboard a new recruit or to support a long-term employee. But can professional career planning really help you retain your best workers? Absolutely.

How to Create a Good Employee Handbook

Creating an employee handbook may feel like a daunting task, but it protects businesses and employees. A comprehensive guidebook not only establishes the company’s culture but also provides clarity on employees’ rights and responsibilities. Let’s dive into a step-by-step approach that will help you create an employee handbook with ease and confidence.

10 Important HR KPIs Every Company Should Track

Monitoring key performance indicators (KPIs) in human resources is essential for steering your organization towards success.

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.

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.

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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.

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