As Restaurant owners look over their payroll and expenses from 2010, they should look into outsourcing their payroll-processing in order to help their business operate more efficiently.
With the new year fostering in new payroll tax changes like the two percent reduction of Social Security for employees, and continuation of old payroll tax cuts, the beginning of 2011 is the perfect time to make the change. Since year-end reporting is complete, the switch to a payroll service provider can be a smoother transition in January than in other times of the year.
Why Use a Payroll Service Provider to Outsource?
When sales decline, restaurant operators have a comparatively more difficult time meeting payroll, as labor and wage costs represent one-third of the sales dollar. A good payroll service provider will offer time and attendance, payroll and integrate compliance services for HRIS. With integrated payroll and time and attendance, restaurant managers can keep track of payroll wages and accurately track employees hours worked. Therefore, streamlining processes will help restaurant operators meet their day-to-day payroll needs.
Restaurant Owners Looking to Outsource Payroll Should Consider the Following:
- Figure out the needs of your restaurant by seeking figures and data from current payroll, HR and accounting information stored.
- Look at your options. Research several payroll service providers to determine the services they offer and how that fits with your business. Find out if they can customize their payroll services they provide to your specific needs. For example, your business might need help with accurate time and attendance tracking with integrated time clocks, or worker’s compensation because of issues you previously encountered, so be sure the provider can handle those services as well as basic payroll. Then, evaluate the features and benefits.
- Ask other restaurant owners with similar needs, or Chambers of Commerce or trade association members about their payroll processor. Ask questions about the services they receive and the services that work for them as well as the services they feel the payroll processor lacks.
- Find out the different pricing for each payroll service provider. Some payroll processors charge businesses to add or delete employees. Others offer fixed rates for the length of the contract without incremental fees.
- Look for a payroll service provider that guarantees information security. Make sure the payroll provider has a good reputation and audits their security with a third party auditor. Make sure you are comfortable with how your provider transmits sensitive data.
- Look for a payroll service provider that prepares quarterly and annual employee tax filings.
- Make sure the payroll service provider has user-friendly software. Find out what type of support the provider offers and make sure other restaurants that had to troubleshoot are happy with the results.
Restaurant owners can use these steps to assist in finding a restaurant payroll service provider and by doing so, can reduce expenses, enhance operations and increase efficiency.