Restaurant Payroll
SABRE ONLINE PAYROLL TRACKS TIPPED EMPLOYEES & KEEPS YOU COMPLIANT
Running a restaurant is not meant for everyone as managers and/or owners normally have several balls in the air that they must juggle. Not only that but there are a myriad of complex rules and laws that effect restaurant workers that effect few other businesses. Put the complexity of the payroll laws together with the number of hats you must wear and you see why many of your fellow restaurant owners choose to outsource their payroll to Sabre.
Not to Worry - Sabre is here to do the heavy lifting on tipped employees.
No matter how many employees or how they are paid Sabre Payroll Online can handle your hospitality/ restaurant payroll timely and accurately. We do all of this while helping to keep you in compliance with all the rules and regulations that restaurants have to deal with. Call today to learn more about our payroll for restaurant owners.
Allocated Tip & Shortfall Reporting
Restaurant employees are required to report all tip income. The IRS requires the total tip income reported during any pay period equals at least 8% of the total receipts. A tip allocation is allotted to all tipped employees to make up the difference between the total tips reported and 8% of the restaurants gross receipts. This report, available for no charge from Sabre Payroll so that you can correctly file your Form 8027. We also provide a tipped employee's shortfall report to notify you if employee's wages on a payroll do not cover the amount owed for taxes and/or other deductions.
Tip-to-Minimum Wage Calculation
The current minimum wage for tipped employees in restaurants is $2.13 plus tips. The current Federal Minimum wage is $7.25. When tipped employee’s wages and tips are added together and divided by the number of hours worked it must calculate to $7.25 per hour or more. Sabre Payroll will ensure that you stay in compliance with this minimum wage calculation.
FICA Tip Credit Report
Employers are required to pay FICA taxes on all tips. This is well known and done by most all restaurants. What is not so well known is that under the correct circumstances the restaurant owner may be eligible for a substantial credit by filing form 8846. While the calculation is a bit complicated for a discussion here just suffice it to say that our payroll reporting will give you the information you need to apply for this credit.
Taxes on tips done right!
The IRS requires restaurant employers to collect taxes on all wages and tips reported by tipped employees. Sabre Payroll online makes this process simple with our web-based system that you can access from anywhere! As an employer with tipped employees you must collect the following taxes on all tips:
We take care of it all:
- Federal Income Tax
- Social Security Tax
- Medicare Tax
- Federal Unemployment
- State Tax
- State Unemployment
- Local Tax
You already put out fires every day running your successful restaurant – Let Sabre Payroll handle the payroll and tip reporting.
