Tackling Common Restaurant Payroll Challenges

While running a restaurant can be rewarding, the job can be daunting and stressful. Managing finances and staying on track of payroll often comes with unique challenges. 

Understand Worker ClassificationA  common mistake businesses make is improperly classifying employees as independent contractors. There are key differences between employees and independent contractors and misclassification can lead to legal issues and costly penalties for the business. Restaurant owners should be aware of the Department of Labor’s (DOL) published rule from January of this year which took effect March 11, 2024, and changed how the DOL analyses worker classification under the Fair Labor Standards Act (FLSA).

Handling Payroll Taxes Restaurant owners must also be aware of taxes they need to withhold from their employees’ paychecks. There are many factors to consider when it comes to employee tax withholdings at the federal, state and sometimes local level. Each tax agency has its own filing…