Payroll for Restaurants: Why Automation Will Save You Thousands
Payroll is easily one of the biggest headaches of every restaurant business owner. Manual data transfers, statutory holiday calculations, along with multiple positions and pay rates are basic examples of tedious tasks of payroll. Innovative payroll software automate this process and helps business owners gain peace of mind that their employee payroll is done accurately. Here are three benefits of restaurant payroll software and how it can save restaurants thousands of dollars:
With everyone you hire, you are purchasing labour. By automating payroll, payroll admins can spend their time on more important tasks and managers can spend more time on the floor.
In short, the cost savings add up significantly. A typical restaurant who has to manually transfer clock-in/out hours from paper or their POS to their payroll system, can spend on average 5 minutes per employee, per payroll run.
With a 100 employee establishment with a 26 pay-period frequency, this can cost $4,333.00 annually in related payroll administrative costs (100 employees x 26 pay run x 5 minutes x $20/hourly rate).
By investing in restaurant payroll software, you can reduce the amount of time and money spent on the burden of administrative tasks and increase productivity.
Payroll Error Costs
Human errors are inevitable when manually calculating hours to payroll. Almost always, mistakes happen whether you're doing manual transfers of employee hours from your POS system, or via pen and paper.
Payroll errors will negatively impact your employee morale and cost you thousands of dollars. Employees will only complain about payroll mistakes if they are underpaid - which leaves the company susceptible to overpaying employees for payroll errors.
If your payroll is $500,000 annually, a 2% error factor equates to $10,000 in costs.
Time theft, along with buddy punching, is one of the biggest unintentional costs of your business. The American Payroll Association found that 43% of hourly worked exaggerated their time worked during a shift. Arriving late and clocking in as on time, and buddy punching are a few examples of time theft.
Time theft can add up to thousands of dollars annually.
- A hourly employee ( $10/hr) racks up 1 hour of unauthorized time per week.
- That single employee is costing you $500 per year ($10/hr x 1 x 50 weeks = $500/year per staff).
On a 100 employee establishment, that can cost up to $50,000 annually.
Mistakes are made less when time attendance software is used to track employee hours! By automating payroll and streamlining hours into payroll allows data to be accurate. This way, there won't be any discrepancies between employee hours and employee pay.
Automating payroll will streamline all payroll data. Everything payroll related, for staff or management, can be easily accessible online and found in one place. Most restaurant payroll software providers allow employees easy online access items like their T4s, or pay stubs instantly. You’ll be able to centralize documents too! Legal and government documents can kept securely, and you'll no longer have to search for something in 10 different places.