Restaurant Payroll Processing Checklist

Bi-weekly payroll run for a full-service restaurant — covers tipped wage reconciliation, overtime and 80/20 review, tax withholding, and post-run filings. Run by the GM or bookkeeper using Toast Payroll, 7shifts, or R365.

Use this workflow
1

Pre-Payroll Preparation

  1. Pull and approve timecards in 7shifts
  2. Reconcile declared tips against POS credit-card tips
  3. Sync new hires and terminations to payroll
  4. Confirm tip-credit notice on file for new tipped staff
  5. Flag overtime and 80/20 side-work exceptions
2

Tip & Wage Calculation

  1. Calculate gross wages by pay rate and hours
  2. Apply state tip credit where allowed
  3. Run tip pool distribution per house policy
  4. Verify tipped employees clear minimum wage
  5. Apply taxes, garnishments, and benefit deductions
3

Manager Review and Approval

  1. Review the pre-process payroll register
  2. Compare labor cost percentage to weekly target
  3. GM sign-off on the payroll run
  4. Document any wage corrections needed
4

Payroll Submission

  1. Submit payroll to Toast Payroll or Gusto
  2. Confirm direct deposit ACH file transmitted
  3. Distribute pay stubs to staff via the employee portal
  4. Cut paper checks for non-direct-deposit staff
5

Tax Filings and Record Keeping

  1. File 941 deposit through EFTPS
  2. Submit state withholding and SUTA deposits
  3. Post payroll journal entry to R365
  4. Archive payroll register for the four-year retention window