Running a restaurant is hard enough without payroll making it worse. You’ve got tipped servers, tip credits, tip pooling, servers working two pay rates in one shift, line cooks picking up extra hours, and a POS system that may or may not talk to your payroll software. The right payroll software handles the tipping complexity automatically — the wrong one turns every pay period into a math puzzle.
[AFFILIATE DISCLOSURE: Payroll Faceoff is reader-supported. We may earn a commission when you sign up through links on this page. That doesn’t change our rankings — we recommend what’s best for restaurants, period.]
How we researched this
We didn’t run a pretend test kitchen. Instead, we compared published pricing, feature lists, and hundreds of verified user reviews from G2, Capterra, and TrustRadius, plus restaurant-industry buyer guides from Merchant Maverick, TechRepublic, business.com, and Workforce.com. If a product is on this list, it’s because restaurant owners and payroll buyers actually use it and talk about it.
Quick comparison
| Product | Best for | Starting price | Standout feature |
|---|---|---|---|
| Gusto | Best overall for independent restaurants | $49/mo + $6/person | Full-service payroll in all 50 states with automatic tax filing |
| Square Payroll | Restaurants already on Square POS | ~$35/mo + $6/payee | Hours, tips, and breaks import automatically from Square POS |
| OnPay | Simple, transparent pricing | $49/mo + $6/worker | One flat plan, unlimited payroll runs, W-2/1099 included |
| QuickBooks Payroll | Restaurants already on QuickBooks | $50/mo + $6.50/employee | Syncs payroll straight into your books |
| Homebase | Hourly teams and scheduling | Free plan; payroll $39/mo + $6/employee | Hours flow straight into payroll |
| Patriot | Tightest budgets | $17/mo + $4/worker | Supports tip reporting and multiple pay rates at a bargain price |
The best payroll software for restaurants, reviewed
Gusto — Best overall for independent restaurants
Gusto is our top pick for independent restaurants because it takes the whole payroll headache off your plate. It’s full-service payroll in all 50 states, with automatic tax filing, unlimited payroll runs, benefits administration, and time tracking (on the Plus plan and up). You run payroll, Gusto handles the filings, the taxes, and the paperwork. Over 500,000 businesses use it, and it holds a 4.6/5 rating on G2.
Pricing is straightforward: Simple is $49/mo + $6/person, Plus is $80/mo + $12/person, and Premium is $180/mo + $22/person. Most small restaurants will be fine on Simple or Plus. Gusto handles tipped wages and tip reporting cleanly, and multi-location compliance is built in — useful if you ever open a second spot. If you’re a busy owner who wants payroll to just happen, this is the one.
[AFFILIATE LINK: Gusto]
Pros: – Automatic tax filing in all 50 states — no manual quarterly filings – Unlimited payroll runs, so you can run off-cycle bonuses without penalty – Time tracking included on Plus and up; works for hourly restaurant teams – Strong G2 reputation (4.6/5) with a big small-business user base
Cons: – Per-person pricing adds up as your staff count grows – POS integration isn’t as deep as Square Payroll’s if you’re already on Square – Benefits admin is built for general small businesses, not restaurant-specific needs
Square Payroll — Best if you already use Square POS
If your restaurant runs on Square for point of sale, Square Payroll is the path of least resistance. Hours, tips, and breaks import automatically from Square POS into payroll, which eliminates the double-entry work that eats up a manager’s Sunday night. Starting around $35/mo + $6/payee, it’s one of the more affordable options too.
That said, it’s a specialist tool. It shines for hourly tipped staff on Square and is noticeably weaker for salaried or remote workers. If your whole operation lives in the Square ecosystem, this is a no-brainer. If it doesn’t, don’t adopt Square just for the payroll.
Pros: – Hours, tips, and breaks flow in automatically from Square POS — no manual entry – Low starting price (~$35/mo + $6/payee) – Familiar interface if your team already uses Square
Cons: – Weak for salaried and remote workers — built around hourly Square users – Only makes sense if you’re already on Square POS – Fewer HR and benefits features than Gusto or OnPay
OnPay — Best for simple, transparent pricing
OnPay is refreshingly simple: one plan, $49/mo + $6/worker, with unlimited payroll runs, multi-state payroll, automatic tax filings, and W-2/1099 preparation all included. The first month is free. Business.com named it the best online payroll service for small businesses, and the praise is deserved — there’s no tier-hopping to unlock basic features.
For restaurants, OnPay handles tipped wages, multi-state filings, and the standard compliance work without upselling you. An HR add-on runs $15/mo + $2/worker if you want help with offer letters and compliance docs. The main gap is convenience: there’s no dedicated mobile app, which is a genuine annoyance for owners who run payroll from their phone between lunch and dinner service.
Pros: – One simple plan with everything included — no feature gating by tier – Unlimited payroll runs and automatic tax filings included – W-2 and 1099 preparation included at no extra charge – First month free to try it out
Cons: – No dedicated mobile app — awkward for owners who manage from their phone – No POS integration like Square Payroll’s – Fewer built-in HR tools than Gusto
QuickBooks Payroll (QuickBooks Workforce) — Best if you’re already on QuickBooks
If your restaurant’s books live in QuickBooks Online, QuickBooks Payroll is the obvious companion. Payroll data syncs into your accounting automatically — no exporting, no re-keying, no mismatched numbers at tax time. Plans run Core $50/mo + $6.50/employee, Premium $88/mo + $10/employee, and Elite $134/mo + $12/employee, with a 30-day free trial.
The honest caveat: G2 reviewers consistently complain about price increases over time and weak support on the lower tiers. Intuit is not known for restraint on pricing. But if your accountant already works in QuickBooks and you want payroll and books talking to each other without friction, this is still the best fit.
Pros: – Automatic sync between payroll and QuickBooks books – Your accountant probably already knows QuickBooks, which saves everyone time – 30-day free trial to evaluate before committing – Handles the full range of payroll needs including taxes and filings
Cons: – G2 reviewers report price increases over time and weak support on lower tiers – Pricier than OnPay or Patriot at comparable feature levels – Ties you deeper into the Intuit ecosystem
Homebase — Best for hourly teams and scheduling
Homebase was built for hourly teams, which describes most restaurants. The free plan covers scheduling and time tracking for one location, and the payroll add-on ($39/mo + $6/employee) pulls hours directly into payroll with automatic tax filing, direct deposit, and W-2/1099 preparation. For a restaurant that’s currently juggling a separate scheduling app and a manual payroll process, Homebase can replace both.
The trade-off is depth. Advanced HR features are thinner here than with Gusto or OnPay, and if you outgrow a single location, you’ll feel the limits. But as a combine-your-scheduling-and-payroll move for a small restaurant, it’s genuinely good value.
Pros: – Hours flow directly from scheduling into payroll — one system, no double entry – Free scheduling and time-tracking plan for one location – Payroll add-on is affordable at $39/mo + $6/employee – Built specifically for hourly workers
Cons: – Weaker on advanced HR and benefits than Gusto or OnPay – Less ideal for multi-location operations – No deep POS integration
Patriot — Best for the tightest budgets
Patriot is the budget pick that still takes tipping seriously. Basic Payroll starts at $17/mo + $4/worker — a fraction of what Gusto or QuickBooks cost — and supports tip reporting, multiple pay rates per employee, and custom pay schedules. For a small restaurant watching every dollar, that’s real functionality at a genuinely low price.
You get what you pay for, though. Tax filing and HR support are thinner than the full-service options, and the interface is more basic. But if the alternative is doing payroll by hand or in a spreadsheet, Patriot is a massive upgrade for the price of a few entrees a month.
Pros: – Lowest starting price on this list: $17/mo + $4/worker – Supports tip reporting and multiple pay rates per employee – Custom pay schedules for flexible staffing
Cons: – Tax filing and compliance support are thinner than full-service competitors – More basic feature set and interface – No POS integration or built-in time tracking
What about ADP RUN?
ADP RUN is worth one paragraph because you’ll see the name everywhere. It’s quote-based custom pricing aimed at larger and multi-location restaurant groups that need customization. It’s genuinely capable software. But for a single location or a small group, it’s overkill and pricey — and you won’t know what it costs until you sit through a sales call. Independent restaurants should start with the options above.
Our verdict
Our #1 pick is Gusto. For an independent restaurant, payroll isn’t a side task you want to think about — it’s a compliance landmine involving tipped wages, tip credits, multi-state tax filings, and W-2s. Gusto takes all of that off your plate with automatic filing in all 50 states, unlimited payroll runs, and time tracking built in, at pricing that’s transparent and fair for a small team. It’s the only option here that combines full-service payroll with a genuinely small-business-friendly product, and its 4.6/5 G2 rating across hundreds of thousands of users backs that up. You spend your time running the restaurant; Gusto runs the payroll.
Runner-ups for specific situations:
- Already on Square POS? Square Payroll — the automatic import of hours, tips, and breaks is too good to pass up.
- Tightest possible budget? Patriot — tip reporting and multiple pay rates at $17/mo + $4/worker is hard to beat.
- Already on QuickBooks Online? QuickBooks Payroll — the automatic sync with your books saves your accountant real time.
FAQ
How does tip pooling work with payroll software?
Tip pooling — combining tips from a shift and redistributing them among eligible staff — is supported by most restaurant-capable payroll software, including Square Payroll and Patriot. The software tracks each employee’s share of the pool and reports it as tip wages on their paystub. You still need to make sure your pool complies with federal and state rules (for example, managers and supervisors generally can’t take from the pool), but the math and reporting are handled for you.
Do I need POS integration with my payroll software?
Not strictly, but it saves real time. Without integration, someone has to manually enter hours, tips, and sometimes sales data from the POS into payroll every pay period — and manual entry is where errors creep in. If you’re already on Square POS, Square Payroll’s automatic import is a strong reason to use it. If not, look for software like Homebase where hours flow directly from scheduling into payroll.
Can I switch payroll providers mid-year?
Yes. It’s actually common — restaurants switch most often after a quarter ends. The new provider will typically help you transfer year-to-date payroll totals so your tax filings stay correct. OnPay and Gusto both offer migration assistance, and the process is easier than most owners fear. Just don’t switch mid-quarter if you can avoid it; quarter-end is the cleanest break point.
What does restaurant payroll cost per month?
For a small restaurant with 10–15 employees, expect roughly $50–$150/month in base fees plus $5–$12 per employee, so $100–$330/month total for a full-service option like Gusto or OnPay. Budget options like Patriot can bring that down to under $100/month. Square Payroll lands in the middle. ADP RUN is the wildcard — custom pricing that tends to run higher than all of these.
How do tip credits work with payroll software?
The federal tip credit lets employers count a portion of tips toward the minimum wage obligation, but only if the tipped employee is properly informed and tips are correctly reported. Good payroll software tracks reported tips per employee and applies the credit correctly on the paystub. Rules vary by state — several states don’t allow a tip credit at all — so make sure your software handles multi-state rules if you operate near a state line.
Does payroll software handle multiple pay rates for one employee?
Yes, most of the options here do. It’s common in restaurants — a server who also does host shifts at a different rate, or a cook who picks up a catering gig at overtime pay. Patriot, Square Payroll, and Gusto all support assigning multiple pay rates to a single employee and applying the right rate to the right hours.
Do I need HR features, or just payroll?
For most independent restaurants, payroll plus time tracking covers 90% of the need. HR features (offer letters, compliance docs, benefits admin) become worth paying for once you’re hiring steadily or dealing with turnover documentation headaches. OnPay’s $15/mo HR add-on and Gusto’s built-in HR tools are there when you need them, but don’t pay for them until you do.
Sources
- Merchant Maverick — Best Payroll Software for Restaurants: https://www.merchantmaverick.com/best-payroll-software-for-restaurants/
- TechRepublic — Best Restaurant Payroll Software: https://www.techrepublic.com/article/best-restaurant-payroll-software/
- business.com — Best Restaurant Payroll Software: https://www.business.com/categories/best-restaurant-payroll-software/
- Workforce.com — Payroll Software for Restaurants Buyer’s Guide: https://workforce.com/buyers-guides/payroll-software-restaurants
- Gusto Affiliates: https://gusto.com/affiliates?itm_source=affstuff
- business.com — OnPay Review: https://www.business.com/reviews/onpay/