9 Signs You Should Outsource Your NY Restaurant Payroll
Owning a restaurant is one thing, but owning a restaurant in New York? Now that’s a whole different thing. You likely have to manage tens or even hundreds of employees—from servers to hostesses to bartenders. On most days, you don’t even get to take your mid-morning coffee because let’s face it, you are super busy. When you’re not reminding your staff to continually offer world-class customer service, you are probably stuck behind a desk trying to work out the mathematics behind your NY restaurant payroll.
In as much as payroll processing is an unavoidable part of running any business, it can also be time-consuming and frustrating. It’s not just about doing the hard sums and keeping careful records. You also need to stay on top of all the tax rules and regulations. Think about it. Wouldn’t you be better off if your NY restaurant payroll was handled by someone else, perhaps a professional?
9 Signs to Outsource Your NY Restaurant Payroll
Here are the top signs that you might want to outsource your NY restaurant payroll.
1. You’re Spending Way Too Much Time on It
Let’s be honest. How many hours do you spend searching for payroll documents, entering timecard data, distributing paychecks, and filing taxes? 15 hours a month? 20? More?
Sure, you can figure out a way to handle your payroll problems, but you might spend hours or days, or weeks figuring out a solution. Simply outsourcing your restaurant payroll can save you all of that hassle and allow you to focus on other priorities.
2. Too Many “Invisible” Costs Involved
If you think you only incur employee salaries and benefits when processing payroll, think again. Printing costs money. Distributing checks cost money. Heck, even filing mistakes cost money.
Outsourcing payroll processing helps ensure that your operational budget remains intact. Who knows, with a few saved dollars here and there, you might be able to grow your bottom line in the long run.
3. You’re Finding It Difficult to Manage Staff Turnover
You don’t need us to tell you that the hospitality industry has a high staff turnover. 5% of workers in the sector have called it quits so far in 2021.
Readjusting salary structures every now and then can be a bit tedious, especially for an ever-busy restaurant owner. Not to mention that you have to keep a meticulous record of benefits amid the ever-changing staff roles and shift patterns.
Fortunately, when you outsource payroll, you outsource time wastage, disruptions, and liability.
4. Complying With Tax Rules is Becoming a Headache
The IRS requires every restaurant owner to remit taxes on behalf of their employees in a process called payroll withholding. In other words, if an employee is earning $1,000 a week, you ought to deduct roughly 25% of that to cover federal and state taxes. Chances are, you’ve already grown tired of calculating and reporting these taxes to the IRS every single month.
Thankfully, payroll providers know exactly what needs to be calculated and reported, which lessens the burden on your team. You no longer have to burn the midnight oil switching between innumerable IRS tabs with sticky notes on one hand and cold coffee on the other.
5. You’re Too Preoccupied During the High Season
As you well know, the hospitality industry is susceptible to seasonal changes. One month, you’re raking in hundreds of thousands of dollars, and the next, you’re barely able to balance the books. If you’re like any other profit-oriented restaurant owner, you definitely want to maximize your income during the high season. Sadly, most owners are pegged back by the endless payroll processing tasks lying on their desks every single month.
Outsourcing your NY restaurant payroll means that you’ll have time for what matters the most: growing your ROI. Given that almost every month is high season in New York, you’ll have more hours to work on your promotional strategy and win over more clients as a result.
6. Accuracy is a Concern
Payroll mistakes happen every now and then, and when they do, they can be costly.
Imagine crediting employee Jane $1,000 on her paycheck while she was supposed to get only half the amount. Well, for starters, you’ll be hugely disappointed with yourself. Even if you are able to recover the money, you might still spend a lot of your precious time tracking it down to its last penny.
Chances are good that payroll experts will make far fewer mistakes. That’s because they’re always up-to-date with tax regulations and have processes and technologies in place to catch entry errors.
7. You’re Finding it Difficult to Track and Report Tips
Complying with the Fair Labor Standards Act can be a challenge, particularly if you can’t figure out the exact amount your employees are getting tipped per shift. While that may not seem like a big deal, failure to meet the minimum wage requirements for each employee (which includes tips) may land you in hot water.
Payroll specialists live and breathe tips tracking. They know exactly what it takes to report every single tip your staff gets. Why gamble with the law and risk costly fines when you can have your tips accurately tracked by experts?
8. You Can’t Quite Keep Up With Payroll Cycles
Running several restaurants in New York or the Long Island Area? It’s common for businesses that operate from multiple sites to operate a number of different payroll cycles. This makes an already onerous job even tougher.
Outsourcing sends that challenge—and the time and costs associated with it—outside the business.
9. You Need Peace of Mind
A goodnight’s sleep is worth the investment to outsource payroll processing. You’ll never have to stare at the ceiling at 2 am simply because the sums in your head are not adding up with those in the books.
Besides, not worrying about payroll will give you more time (and energy) to focus on other crucial aspects of your business.
It’s crystal clear that outsourcing payroll processing can save you plenty of time and money and reduce your business liability.
The best time to outsource your payroll processing was yesterday; the second-best time is now. What are you waiting for? Get a free quote from your local NY restaurant payroll provider today!