Payroll

Restaurant payroll is complicated. We handle it.

Tip structures, multi-role pay, and FICA credits, handled correctly every cycle.

Works With Toast Payroll, ADP, Gusto, Paycheck, Paycom, and More
Multi-Location Payroll Processing
No Platform Switch Required

Local, State, and Federal Compliance Support
Hospitality Payroll Best Practice Consulting
Restaurant Tip Manager Tools

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Said the payroll and operations teams make processes seamless.

"The payroll and operations teams make the processes seamless."

Ginger Harrelson

Dogwood Restaurant & Bar

Frequently Asked Questions

Can restaurants claim a tax credit for the FICA taxes paid on tips?

Yes. Under IRC Section 45B, employers can claim a federal tax credit for the employer-paid portion of Social Security and Medicare taxes on employee tips that exceed the federal minimum wage threshold. This credit, known as the FICATip Credit, is claimed annually using IRS Form 8846 when filing the business tax return, and it directly offsets the payroll tax burden created by tipped wages discussed above. Many restaurants either miss this credit entirely or miscalculate it due to the complexity of tracking eligible tip amounts across employees and pay periods. Cerboni tracks the required data throughout the year and ensures the credit is calculated correctly and claimed at tax time.

How does restaurant payroll work?

Restaurant payroll involves calculating employee wages, overtime, tips, payroll taxes, deductions, and benefits before issuing employee payments and filing required tax documents. Because restaurants often have hourly employees, multiple pay rates, and tipped staff, payroll can become complicated quickly. Cerboni simplifies the process by managing payroll from start to finish, helping restaurants remain compliant while ensuring employees are paid accurately and on schedule.

How do restaurants report tips to the IRS?

Restaurants are required to report employee-reported tips and withhold the appropriate payroll taxes. Employers must also maintain accurate payroll records and issue the proper tax documents at year-end. Cerboni manages payroll tax reporting and helps restaurants meet federal payroll reporting requirements while minimizing administrative work.

How do you calculate tipped employee payroll?

Tipped employee payroll includes hourly wages, reported tips, overtime when applicable, payroll taxes, and any required tip credits under federal and state laws. Because these calculations can be complex, many restaurants rely on experienced payroll providers. Cerboni helps ensure tipped employee payroll is calculated accurately while maintaining compliance with payroll regulations.

Why is restaurant payroll more complicated than other industries?

Restaurant payroll is unique because it often includes tipped employees, multiple pay rates, overtime, shift differentials, seasonal staffing, and changing labor laws. These factors make payroll more complex than in many other industries. Cerboni specializes in restaurant payroll services, helping restaurant owners simplify payroll processing while ensuring employees are paid accurately and payroll remains compliant.