Article

7 questions restaurateurs should ask when choosing payroll provider

Go with a provider who not only can handle the calculations and payroll tax payments, but who also understands the food industry.

April 3, 2014

By Michael Alter,
SurePayroll Inc.

One of the greatest recurring expenses for the limited-service restaurant industry is payroll.

It's a challenge to keep up with ever-changing regulations, and there is a lot to remember from wages and tip calculations to shortfalls and deciphering your FICA tip credit. You want to ensure that your employees are paid accurately and on time, but you also need to make sure your taxes are filed before the necessary deadlines. There is a lot of sensitive data at stake.

Outsourcing payroll can save you a lot of time and money, allowing you to focus more on strategy and operations and most importantly — your customers. You want a provider that can handle the calculations and payroll tax payments, reducing administration time and saving you from potentially costly mistakes. It is important, however, to choose a payroll provider that is the right fit for your company, and asking the right questions will ensure that happens. Use the info below as a checklist when conducting your search.

Michael Alter

1. How many clients has the payroll company been serving and for how long? Ask the potential provider to list clients who have been with them for several years, and call a few of these references.
2. Ask whether the provider really understands the restaurant and food industry. Find out if the client has experienced any service issues.
3. Have they ever had problems with tax filings in the past? Inquire whether any of these references have verified that their filings were indeed made.
4. Is the payroll provider registered, and does it have any complaints registered against it with the Chamber of Commerce, Better Business Bureau or state Attorney General's office? Check out complaints — not just whether there are complaints but also the nature, and whether or not those complaints have been resolved. Also, you'll want to know if there has been a rise in complaints in recent months or years.
5. Has the provider passed appropriate IRS assurances?
6. What is the credit report score of the company? You may want to run a credit report on the provider for a small fee, so you can get a clear window into their recent credit history.
7. Another important element you should investigate is how the provider keeps your information secure. You want your sensitive data well protected. You'll want to ensure that the company provides cutting-edge security technologies and techniques to keep your data confidential and available when you need it. Ask if its data center is alarmed and monitored 24/7.

In my experience, restaurant payroll is high risk and low reward. It is simply expected that your employees will be paid accurately and on time. If they're not, it will greatly lower employee morale, as well as your restaurant's reputation. No restaurateur can afford this.

Michael Alter is president and CEO of SurePayroll Inc, a provider of online payroll services to small businesses nationwide.

Cover photo: Courtesy of Flickr