Avoiding the Four Biggest Traps of Restaurant Payroll

There are many cases of restaurateurs being charged with violations of labor laws, such as the owner of a DC fine-dining restaurant having to pay more than $500,000 following allegations of wage theft, or two Massachusetts eatery owners having to pay around $475,00 in restitution and civil penalties for violations including failing to pay minimum wage, failure to make timely payments to employees, violations of the state’s tips laws, and failure to keep accurate payroll records.

While these cases may be on the more extreme side, restaurant owners have to be careful not to fall into any traps when it comes to payroll, as even accidental violations could still yield big penalties. As an example, a restaurant owner doing payroll by hand may incorrectly record overtime pay and tip records, which subsequently leads to tax errors. Even if these were unintentional, this individual would still be subject to fines and a loss of trust with staff.

This goes to show that restaurant staff pay…