How to Find the Best Payroll Software for Your Restaurant in 2025

If you’re after a payroll system to streamline your restaurant’s finances, Gusto should be your top pick. The payroll platform lets you get started for just $40 plus $8 per employee, per month, and offers unlimited payroll runs on all of its plans.

Toast Payroll is another great option, boasting a seamless integration with its native POS system, while ADP’s robust multi-venue support makes it an excellent fit for chain restaurants.

Most restaurant owners aren’t payroll experts, making choosing the right payroll software challenging. This guide demystifies the process by highlighting the best payroll software for restaurants. We’ll also cover everything you need to know about payroll software for restaurants, including what features you need and how to choose the best platform.

Working in the Food & Beverage Industry? Don’t miss Expert Market’s exclusive industry report exploring today’s challenges and future predictions.

Top 5 Restaurant Payroll Software: Overview

Let’s take a closer look at five platforms that work well for the restaurant industry, based on our Expert Market’s own independent insights.

1. Gusto: Best Payroll Software for Restaurants Overall

Gusto’s key features

• Advanced tip management features
• Multiple pay rates
• Integrated time-tracking tools
• POS integrations
• In-built HR tools

Why is Gusto good for restaurants?

Gusto is low-cost payroll software that offers unlimited payroll runs, automatic compliance checks and tax filing, and administration tools for employee health insurance plans. It’s very easy to use and offers a mobile-friendly employee self-service portal.

Gusto caters to restaurants’ flexible payroll needs. You can use the software to pay staff weekly, bi-weekly, monthly, or on-demand — without any additional fees. The provider also lets restaurants customize their pay rates and locations per employee, ensuring that each staff member is accurately compensated for their role and hours worked.

Gusto also offers comprehensive tip tracking features, designed specifically for restaurants. The platform lets you report various types of tips, including cash tips, paycheck tips, and service charges, directly in the system. For employers utilizing the Fair Labor Standards Act (FLSA) tip credit, the platform also ensures compliance by adjusting employee pay if tips and wages do not meet the minimum criteria.

Gusto also integrates seamlessly with time tracking tools like Upserve and 7shifts, enabling restaurants to import employee hours and tips into the payroll system. This add-on helps to reduce manual data entry for restaurant managers, making payroll processing faster and more accurate.

The payroll software makes tax and compliance a breeze, too. Gusto calculates, files, and pays federal and local payroll taxes automatically, reducing the need for managers to have to carry out the tasks manually. It also handles W-2s, 1099s, and other forms required by US businesses, making it even easier for restaurants to nail compliance.

Gusto supports retirement plans and additional benefits like workers’ compensation and life insurance. However, these require paid upgrades as they aren’t included in basic packages.

Where Gusto could improve

Gusto is a versatile payroll provider for restaurants, but it’s not without limitations. Gusto’s time-tracking tools don’t support shift scheduling, custom fields, or biometric scanning – all features that help restaurants track employee attendance accurately.

Gusto’s reporting capabilities aren’t as sophisticated as rivals like QuickBooks’, either. The platform lacks advanced customization for reports, which could be a dealbreaker for restaurants in need of detailed, tailored insights into insights like tip distribution and labor costs.

2. Toast: Best Integrated Payroll and POS Platform

Toast’s key features

• Seamless integration with POS
• Advanced inventory and profit management tools
• Native delivery and takeout app
• Tip pooling support
• Onboarding tools and employee app

Why is Toast good for restaurants?

Toast is a comprehensive services provider for restaurants that offers a point-of-sale, credit card processing, a property management system, marketing tools, and payroll software.

Toast’s payroll software supports payroll in all 50 states and handles tax filings automatically. You can pay employees by direct deposit, check, or prepaid card.

The platform is bundled with its point-of-sale and offers deep integrations with Toast’s other tools, so it’s best if your restaurant uses multiple Toast products.

Toast Payroll’s biggest upshot is its direct integration with its native POS system. By syncing both systems, restaurants can keep data in one centralized location, reducing manual data entry, minimizing errors, and ensuring accurate payroll processing as a result.

Toast also helps restaurants onboard with eaze. The platform facilitates digital onboarding, allowing new hires to complete necessary paperwork electronically. In addition, the payroll platform provides tools for managing employee schedules, tracking performance, and handling compliance, preventing managers from having to manage these tasks using separate software.

Where Toast could improve

While Toast Payroll integrates directly with its own POS solution, it doesn’t let you sync its service with other POS systems. This could be a major roadblock for restaurants already using established point-of-sale systems like Square or Clover.

Toast Payroll is also a lot less scalable than rivals like ADP. The platform is primarily designed for US operations and doesn’t support international locations. Its multi-location management features are a lot more basic than ADP’s, too, making it a poorer choice for chain restaurants.

3. ADP: Best for Multi-Location Restaurants

ADP key features:

• Multi-venue support
• Compliance support for tipped employees
• Time and attendance support
• Large ecosystem of apps
• Staff-focused mobile app

Why is ADP good for restaurants?

ADP is a large payroll provider that offers both DIY payroll software and full-service payroll processing. It’s a good option for growing restaurants since the platform is highly scalable and offers HR software add-ons and support from payroll experts.

ADP’s mobile-friendly self-service apps let employees access their payroll information, request time off, and manage their schedule in a couple of taps. This flexibility reduces reliance on restaurant managers, giving them more time to focus on the things that matter.

Restaurants using ADP can manage payroll and HR functions across various sites, too. This makes the platform ideal for multi-venue and chain restaurants that want to manage processes through one centralized interface, without having to log in to separate systems for each location.

Where ADP could improve

Unlike competitors like Toast and Gusto, ADP doesn’t let you integrate its platform with POS software. This gap can present a range of challenges for restaurants that are intrested in a seamless data flow between their POS and payroll systems.

Not only could this increase administrative workloads for managers, but manual data handling could also result in discrepancies in tip and wage calculations, potentially leading to compliance issues with labor laws and tax regulations.

4. QuickBooks Payroll: Best Seamless Accounting Integration

QuickBooks key features:

• Native add-on payroll tool
• Mobile time-tracking integration
• Tipped employee support
• Customizable pay types
• Robust tax and labor reporting

Why is QuickBooks good for restaurants?

QuickBooks Payroll combines the benefits of QuickBooks’ accounting software with an easy-to-use payroll platform.

Built-in accounting and reporting tools make it easy to track how much your business is spending on payroll and find opportunities to reduce labor costs. QuickBooks Payroll also helps you offer and manage health, retirement, and workers’ compensation benefits for your employees.

Since QuickBooks Payroll connects directly with QuickBooks Accounting, payroll expenses are able to flow directly into financial reports. This integration is a huge plus for busy restaurants intrested in tracking labor costs and expenses in real-time.

QuickBooks also offers a range of compliance features to help you stay on the right side of the law. The platform calculates, files, and pays federal, state, and local taxes, including W-2s and 1099s. This slick automation ensures that your restaurant will remain compliant with US tax laws, affording you precious peace of mind.

Where QuickBooks could improve

QuickBooks Payroll falls short when it comes to tip management. The platform doesn’t offer automatic tip credit calculations, real-time tip data integrations, and only gives users access to basic tip reporting options. This makes it less competitive than providers like Gusto or Toast Payroll for restaurants that rely heavily on tips.

5. Paychex: Best For Flexible Payroll Options

Paychex key features:

• Tax support for restaurants
• Multi-location support
• Multiple pay options
• HR and onboarding support
• Time and attendance tracking

Why we like Paychex

Paychex is an all-in-one human capital management (HCM) platform that integrates payroll processing with HR functions. This unified approach helps restaurants streamline operations like benefits administration and compliance management.

Paychex really stands out when it comes to staff onboarding. The platform provides restaurants with a centralized communication hub, making it easier for managers to train current employees and new hires. The platform also provides progress tracking and milestone monitoring to ensure all onboarding tasks have been completed efficiently.

Why is Paychex good for restaurants?

Paycheck excels when it comes to integrated tip management. The payroll platform offers specialized tools to handle the complexities of tipped wages, including Tip Network — a feature that simplifies tip management — and FICA Tip Credit Assistance — a tool that helps restaurants claim tax credits for tipped employees.

Paychex Payroll also offers a range of robust time and attendance tracking tools, including accurate hour tracking to ensure employees are accurately compensated, overtime calculators that automatically calculate overtime pay, and mobile access for employees.

Where Paychex could improve

Paychex is a reliable payroll provider, but it’s not perfect. The platform currently integrates with select POS systems like Clover and Telech, but doesn’t sync with other leading platforms like Square and Toast.

Paychex also notably lacks many scheduling tools offered by other restaurant-specific platforms. For example, the platform doesn’t give you access to labor cost forecasting or shift optimization tools, making it harder for restaurants to use the system to control labor expenses and manage fluctuating staff needs.

Why Do You Need Payroll Software for Your Restaurant?

You have two options for running payroll for your restaurant: using a full-service payroll provider or managing payroll yourself.

While a lot of restaurant owners would love to hand off payroll to a full-service provider, outsourcing payroll is simply too expensive for most small businesses. Payroll software for restaurants is a more affordable solution that makes it easy to manage payroll yourself.

Payroll software helps you track how much your employees earn and how much money should go to employees versus benefit plan payments and payroll taxes. It also facilitates payments to your employees and ensures you remain in compliance with all applicable labor laws.

Labor is a significant challenge for U.S. restaurants, with Expert Market’s Food and Beverage Report finding that staffing issues affect over 85% of food & beverage operators. This, combined with steadily increasing wages and food prices, is forcing many restaurants to up their menu prices.

Even small payroll errors can add up to substantial losses, making accurate payroll management essential for protecting your profits. Payroll software can automate calculations, handle multiple pay schedules, and more, axing administrative workloads for managers and leaving them to focus on running their restaurant efficiently.

What Features Do You Need in Restaurant Payroll Software?

Let’s dive into some of the key features to look for when choosing payroll software for your restaurant.

Payment options

Most payroll software for restaurants lets you pay employees through direct deposit into their bank accounts. Some offer additional payment methods, such as paper checks or prepaid debit cards, which can be more convenient for employees.

Compliance checks

There are a lot of federal and state rules governing payroll, and your business could be hit with steep fines if you fall out of compliance with these regulations. Look for payroll software that runs automatic compliance checks for break time, overtime, and minimum wage requirements. Your software should also automatically remind you about required reports and alert you if there are changes to payroll regulations in your state.

Tax filing

Your software should automatically file payroll taxes with both your state and the federal government when you run payroll. It should also auto-generate any required tax forms and keep digital copies for compliance and accounting purposes.

Benefits management

Payroll software should also help you manage restaurant employees’ benefits, such as health insurance, and retirement plans. Many platforms let you automatically deduct money from employees’ paychecks to pay for their portion of health insurance premiums. Employees should also be able to put a portion of each paycheck directly into a retirement account.

Employee self-service tools

You don’t want to be bombarded with requests from employees for pay stub copies. Look for payroll software that includes an employee self-service portal, which enables employees to view their pay stubs online and update their bank details without needing to ask you.

Reporting

Your payroll platform should offer built-in reporting tools so you can see how much your business is spending on payroll. You should be able to break down employees’ pay according to base pay, tips, and overtime, plus view spending on benefits and payroll taxes. Look for platforms that let you export this data to Excel for more in-depth analysis.

Integrations

Your payroll software should integrate with all of the other tools your restaurant relies on. Some types of integrations to look for include:

• Time tracking software: Integrating your time tracking and payroll software enables you to approve your employees’ timesheets and submit them for payroll in one click.
• HR software: Integrating HR and payroll software makes it easy to keep employees’ information—like W-2 and 1099 forms—up to date. New employees onboarded in your HR software can also be added to your payroll software automatically.
• Accounting software: Integrating your accounting and payroll platforms enables you to accurately track payroll, benefits, and tax payments alongside your restaurant’s other expenses.
• Point-of-sale: Integrating your point-of-sale and payroll systems helps you track employees’ hours and pooled tips, which are crucial for calculating payroll.

What Else to Consider When Choosing the Best Payroll Software for Your Restaurant

While it’s important to get all the features your restaurant needs, there are a few additional considerations when choosing payroll software.

• Payroll frequency – While many payroll platforms include unlimited payroll runs, that’s not always the case. For example, some platforms let you run payroll every two weeks but charge extra if you want to run payroll weekly or more frequently.
• Scalability – You only want to go through the process of choosing a payroll platform once, so it’s smart to choose a platform that can scale up as your business grows. Look for payroll software that supports multiple restaurant locations in different states and that won’t cost an arm and a leg as your employee headcount expands.
• Ease of use – Payroll can be very complex, so choose software that simplifies the process. An overly complex payroll platform can take a lot of time to learn and increases your risk of making a costly mistake. Look for automated compliance checks, one-click payroll runs, and streamlined settings.
• Customer support –  If you have an issue running payroll, it’s important to resolve it right away. Look for payroll providers that offer 24/7 customer support, ideally by phone or live chat. It’s also a good idea to choose a provider that offers training for new users and a detailed online help center.

How Much Does Payroll Software for Restaurants Cost?

Restaurant payroll software providers usually charge a base fee plus a per-employee fee each month. For example, Quickbooks Payroll charges $85 per month plus $6 per employee per month.

Pricing can vary widely among providers. Affordable payroll software starts at around $40 per month plus $6 per employee per month. Options in this price range typically include a limited number of payroll runs each month and may not include benefits management or state tax filing.

More expensive payroll software plans cost around $180 per month plus $10-$20 per employee per month. These plans usually include unlimited payroll runs, benefits management, state tax filing, and dedicated support from a payroll expert.