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PayCare Payroll Services Company - Restaurant Owners 
Running Your Restaurant
Running a restaurant can be tough and restaurant owners have unique payroll requirements and needs. PayCare understands that restaurants have to be able to hand multiple pay rates, employee turnover, 24-hour operation and tip allocation reports, while attempting to understand the overlapping and confusing laws on employee wages and tips. To assist you to over come these hurdles and to help you run your business PayCare offers a complete system that’s powerful enough to handle the payroll needs of any size business. Since 1997 PayCare has been serving the food and beverage industry and we can help make your business simple.
For more help and or information call PayCare and see how we can make running your restaurant simple. Call us at 1-800-218-9577.
Special Restaurant Legal Requirements
Your employee’s wages may comprise of hourly pay, tips, meals, etc, you as the owner is burden with the challenge of determining what is the Employers Legal Requirement. The Free access to the materials below, will give a basic understanding of your payroll tax and reporting requirements as a restaurant owner:
Minimum Wage - FLSA
The Fair Labor Standards Act (FLSA), instructs employers on how much to pay their employees for all hours worked. (Including regular and overtime hours). The FLSA requires employers to pay employees who are not exempt as follows:
The employer must pay at least the federal minimum wage of $5.15 per hour or the state minimum wage what ever is greater. Go to STATES minimum wage Guide (put this link in ) for greater detail of your state requirements.
All hours worked over 40 hours in a work week must be paid at one and half times the regular rate. Note some states have daily overtime requirements that are on top of the federal laws.
Under the "aggregate estimation" method, the IRS examines credit card slips and finds the average percentage of tips paid by customers. It is assumed that cash-paying customers tip at the same rate. IRS auditors then calculate the total tips by multiplying the tip rates by the restaurant's total receipts. They subtract the tips already reported by employees, apply the FICA tax rate to the remainder, and assess
FICA Tip Credit Report Restaurant owners maybe eligible for a tax credit for employer paid FICA taxes in excess of the federal or state minimum wage, whichever is higher. PayCare can help you get the maximum benefit of this powerful business credit. Besides processing and maintain your payroll records, we can help track your tip credit.
Info on tips:
Who must report tips? Usually employees in the food and beverage profession that receive tips, however employees that receive tips (cab drivers, hair dressers, etc) are also required reporting tips.
Customers and the amount define tips as a voluntary payment if any is determine by the customer. Tips can be cash, check, and credit card or debit card. (The restaurant collects it and pays you)
FICA TIP REPORTING: The use of IRS form 4070 is commonly used to report tips. The info required (can be provided in any format) is:
Amount of tips
Employee's name, address, social security number
The month or period of time
Signature and date
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