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Ensure That Your Employees' Salaries And Taxes Are Paid On Time With Our Payroll Services for Restaurants

Every company with employees must manage payroll. However, each company’s payroll system is unique (particularly those for restaurants).

Restaurant payroll can be a little more complicated than in other industries. Although you have some options for managing payroll, outsourcing a payroll service can provide several benefits. 

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If your restaurant is in the UK, Pearl Lemon Accountants can help ensure that your employees’ salaries and taxes are paid on time. In addition, our payroll consultants have extensive experience and are well-versed in payroll technology. 

Allow us to relieve the stress of business ownership by handling payroll administration.

Give us a call today to learn more about how we can help.

Payroll Services: An Overview

A payroll service provider is a company that handles all aspects of employee payroll on behalf of another company. This arrangement is frequently advantageous for employers who value their time and want to ensure that their employees and taxes are paid on time and accurately. 

Business owners also save money by utilising a payroll service provider to help them avoid costly tax penalties. These companies offer a wide range of payroll-related services to their clients. Processing payroll, employee hours, cutting checks, directly depositing funds, and ensuring that your employees are paid correctly and on time are all part of this.

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The good thing about these services is that you don’t even need extra office space or employees because most of the work can be done online. When you hire a payroll service provider, they will show you how to use its online services. It is frequently a single access point to a website that assists with time and attendance, payment processing, taxes, and other functions.

Employees log in daily to clock in and out for their shifts, and the platform automatically tracks their hours. You can also review and confirm their hours worked at the end of the pay period. 

The payroll service computes their pay, deducts the required taxes, withholdings and payroll deductions, and pays the employee. Employees are typically paid through direct deposit, but other methods can be available.

Signs You Need To Outsource Your Payroll

Here are the top indicators that you’re ready to outsource your payroll workflow:

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Sign #1: High Payroll Staff Turnover

It’s unusual for a payroll job to have a high turnover rate. It’s a complex and stressful job. Nothing is more infuriating than hiring a payroll administrator, training them, and then allowing them to customise the procedures to their preferences, only to have them leave a month later, leaving you with a mess.

Outsourcing payroll services to Pearl Lemon Accountants ensures that a team of dependable specialists manages your company’s payroll with a good reputation in the community.

Sign #2: You Don't Have The Expertise In-House To Meet Compliance Requirements

When you run your payroll, ensuring compliance with various federal and state wage and hour laws can be challenging. You must adhere to regulations regarding pay frequency, minimum wage and overtime, pay methods, payroll taxes, pay stubs, and payroll records. 

Penalties for noncompliance exist for each of these aspects of payroll. And, if your company is like many others, you most likely lack the in-house expertise to stay on top of all the rules.

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Sign #3: In-House Employees Are Overwhelmed

It is common practice to place payroll under the control of Human Resources. This is one of those cases where common occurrence does not always imply common sense. By relieving your Human Resource team of the time-consuming responsibilities of payroll, which require financial expertise, you free up their time to focus on your company’s core HR operations.

Sign #4: Payrolls Take Too Much Time

This relates to the idea of an overworked restaurant employee. However, remember that you can ask an HR worker or payroll-dedicated staff to do too much in payroll, especially if the business is growing. This can lead to long hours spent getting things just right, to the point where you may not notice errors. 

However, if the time spent on payroll is diverting attention away from other tasks that need to be completed by the staff, you urgently need help. At this point, the job should be outsourced so that your in-house staff can focus on more critical tasks.

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Why Use Payroll Services for Restaurants

Restaurants that lack the administrative resources or expertise to run the payroll on their own can seek professional help from a third party. Other benefits of outsourced restaurant payroll services include the following:

Hassle-Free Employee Management

Managing, training, and retaining employees is a monumental task for any employer. Managing workplace and employee conflicts is another difficult decision. When hiring an outsourcing service provider, you can expect streamlined and centralised employee management.

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Make Your Restaurant Business Stay Compliant

Many of the most common payroll mistakes made by restaurant owners in the UK have to do with compliance (or the lack thereof). For example, new restaurant owners may fail to withhold and pay the required NIC tax from each employee’s paycheck. Such oversight could result in significant penalties and fines over time. This is in addition to repaying the entire amount of unpaid tax!

Of course, the NIC tax is just one of many ways a restaurant must maintain payroll compliance. A restaurant owner must also pay business income tax and be responsible for employee health benefits and retirement plans (depending on the size and nature of their business). 

Lastly, paying the full amount of tax due on time is always a consideration.

Instead of worrying about paying avoidable fees and fines or dealing with an unexpected compliance problem, you’ll be able to concentrate on the core aspects of your business, such as preparing healthy, sanitary, and delicious meals and ensuring your customers’ comfort and satisfaction.

Time-Saving

Payroll services save businesses a significant amount of time and resources. Using a payroll service is equivalent to having an additional full-time employee who works around the clock, does not take holidays or time off, and completes all tasks accurately and on time.

If you are currently doing payroll in-house, you should consider who is doing your payroll. Could their time be better spent elsewhere? If so, outsourcing payroll is the most efficient way to make the most of your employees’ time.

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Cost Saving

Any discussion about outsourcing payroll will always end with the same question: How much money will I save? Understandably, the cost is a critical factor that key decision-makers in any organisation will consider, as cost-cutting directly affects the business’s profitability.

The good news is that outsourcing payroll has already been shown to be more cost-effective in the long run: companies that outsource save 18% more than those who manage payroll in-house. 

Better Profitability

Restaurants are more than just places to serve food and beverages. To maintain its smooth functioning, it also requires the input of human resources. To compensate for lost production time, you will have to work harder and longer if your employees are not happy and efficient.

Payroll outsourcing ensures that restaurant employees are paid accurately, on time, and without hassle. As a result, you have more money to spend on your business’s bottom line since you’re not responsible for employees’ benefits like health insurance.

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Focus On Your Business More

Having your payroll handled by an outside payroll company gives you more time to focus on other aspects of running a restaurant. You can rest assured that professionals will handle all your business-related taxes. The only other responsibility you have is to ensure that your employees receive their paychecks on time. 

No excess responsibilities are taking away from your business’s focus on making money.

How Pearl Lemon Accountants Can Help

Pearl Lemon Accountants provide more than simple payroll calculations. We use technology to reduce time-consuming administrative tasks for employers while creating engaging employee experiences. Our payroll experts’ core capabilities include the following:

Complete Payroll Services

Included in our services are accurate payroll processing and payroll management, from the transfer of salary payments to the production of payslips for streamlined periodic and annual processes.

Optional Pension Management

The auto-enrolment legislation requires us to screen eligible new hires, perform complex contribution calculations, manage opted-out employees, prepare employee correspondence, upload contributions and pay data to pension provider websites, and maintain a clear audit trail throughout the process.

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Tax Filing Services

Most restaurants begin with a vision and a business plan. However, in addition to managing your company, you must adhere to several government regulations. Tax regulations can be complicated, and failing to file everything on time can result in tax penalties for your company. 

Pearl Lemon Accountants can help you with the following:

  • Payroll taxes will be withheld and submitted. All taxes, including income and unemployment, are computed and filed by us. Your payments are then delivered on time, saving you from late payment penalties.
  • Take care of payroll tax paperwork. With our payroll tax service, you’ll never miss another deadline again. You won’t have to worry about tax penalties or miscalculations that could result in overpayment or underpayment of payroll taxes.
  • We will file your federal, state, and local taxes. We can also assist with year-end reporting and preparing Forms W-2, 1099-NEC, etc.

Compliance Expertise

Pearl Lemon Accountants’ experts stay current on regulatory changes, and we shall notify you as our client about wage and tax laws that affect your business.

Payroll Reporting

You will automatically receive payment summaries and month-end payroll reports for an in-depth analysis of your company’s salary and pension plans.

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Let Pearl Lemon Accountants Handle Your Payroll

It’s your business, and the ultimate responsibility rests with you. Some bar and restaurant owners rely on themselves or trusted employees, whereas others prefer to hire a professional service. 

On the other hand, dealing with employee requests for payroll information can be tedious and time-consuming. 

Outsourcing with Pearl Lemon Accountants can free time to focus on core business activities while providing the necessary expertise to ensure our professional efficiency. We shall use the best payroll software to deliver accurate results.

Give us a call today for your payroll solution.

FAQs

What you expect from your payroll provider may differ, but outsourcing your managed payroll services can make a significant difference.

Payroll liabilities for businesses include federal, local, and state taxes. The taxes your business must pay are determined by where your business and employees are located (sometimes, they are in different places). 

Furthermore, each state has an unemployment insurance tax that payroll providers will pay on your behalf every quarter. When you hire a payroll provider, they will file the following forms regularly:

Forms 940, 941, W-2, and W-3, as well as Forms 1096 and 1099

Yes! But if you don’t know how to do payroll yourself, use payroll software to reduce the possibility of errors or fines. Many payroll processing services, such as Square Payroll and Wave Payroll, will handle your payroll taxes, filings, and new hire reporting, and you can complete payroll online.

When you allow us to keep track of your finances, you give yourself more time to do your work and please more clients. It's a win-win situation for everyone. Aside from that, you'll also gain financial stability because your assets and liabilities are managed well enough not to cause any trouble for you in the future.

So let our experts work for you, and you won't regret it even a bit.

Book a call today to get started.