If you’ve ever run a restaurant’s payroll, you know it isn’t just about cutting checks.
It’s juggling hourly staff, shift changes, tip calculations, overtime pay, and labor laws while ensuring everyone gets paid accurately (and on time). One small mistake can throw your entire operation off and cause your team to lose trust.
So when choosing a payroll provider tailored to restaurant life, it’s not about a quick Google search. It’s about finding one that understands the industry it serves.
Let’s walk through what to look for and why 7shifts Payroll checks every box.
What makes a good restaurant payroll software?
The best restaurant payroll software does more than just cut checks. Look for a provider that includes the following features:
Built for restaurants: Handle the complexities of restaurant pay, including role changes and tip credits, with ease.
Compliance safeguards: Stay compliant with local, state, and federal laws through built-in labor protections and proactive alerts that help you avoid costly mistakes.
Automated calculations: Eliminate manual math and decrease errors (while speeding up your payroll process) with computerized calculations for wages, tips, and PTO.
Robust integrations: Sync payroll directly with other tools, like scheduling, time tracking, and POS systems, so hours, tips, and sales data can flow automatically, no double-entry required.
Insightful reporting: Access real-time labor and payroll reports to monitor costs, identify trends, and keep your business on budget.
Employee transparency: Create a better staff experience with self-serve access for pay stubs and tax forms—all from the same place they view their schedule.
Support you can count on: Receive help from payroll experts who understand the ins and outs of the restaurant business to ensure smooth, stress-free setup and operations. Scalability for growth: Manage payroll consistently and accurately across your current stores—and any future locations—with no added complexity.
Top features: Why 7shifts is the best restaurant payroll software
We get it—we’re 7shifts, so it might sound a little biased when we say we’re the best restaurant payroll software out there. But here’s the thing: we’ve built payroll specifically for restaurants, and we’ve got the features (and the success stories) to prove it. This includes:
Built-in compliance features for restaurants
Restaurant labor compliance is no joke—and it’s different in every region. From minimum wage to tip credits, keeping up with current rules (as well as any changes) can be overwhelming if your systems aren’t built for it.
The good news is 7shifts Payroll applies local regulations automatically to your labor data to ensure your restaurant stays compliant with pay. Safeguards include region-specific calculations for:
- Minimum wage
- Tipped wages
- Overtime
- Breaks
- Advanced laws (Fair Workweek, Call-in Pay, and more)
Michele Bryant, Director of Operations at Jamba Juice: “A huge thing that I love about [7shifts] is I get a red flag warning when there’s an error before I try to publish. With most other payroll companies that we’ve tried, I won’t know until I push go.”
Unlimited payroll runs at no extra cost
Plus, with 7shifts Payroll, you can run as many regular or off-cycle payroll runs as you need—at no extra cost. This flexibility is especially valuable in restaurants, where new hires, staff turnover, and seasonal schedules often require pay to be processed outside the standard cycle.
Automated calculations (labor, tips, PTO) to save time
Restaurants deal with a lot of moving pay parts: hourly rates, pooled tips, overtime, and PTO accrual. When you’re tracking all of that across different systems or spreadsheets, mistakes become more likely (not to mention the extra hours of manual work).
7shifts Payroll keeps everything in sync, so employee earnings are calculated automatically. It pulls worked hours and approved time directly from your schedule and time data, while connecting sales and tip data from your POS. That means no more manual entry, no more re-keying numbers, and more accurate pay every time.
Michele Bryant, Director of Operations at Jamba Juice: “Payroll is the simplest version we have found—which has many automatic integrations, instead of manual or uploads—saving at least 1 to 2 hours.”
Megan Vidal, Owner of The Kookaburra Coffee: “As long as they’re all scheduled correctly in 7shifts, it’s a seamless process. We don’t really have to do anything except just some quick double-checking. But it does all the mathematics, all the work—it’s kind of phenomenal.”
Robust reporting & insights for smarter budgeting
7shifts Payroll also gives you the tools to dig deeper into your labor data to make smarter, data-driven decisions. From pay summaries to variance tracking, you’ll have all the insights you need to stay on budget (and stay compliant). Key access features include:
- Payroll Reporting: Quickly pull employees’ past earnings, deductions, and taxes for any desired period.
- Worked Hours & Wages or Employee Timesheet: Verify labor data accuracy and keep complete, up-to-date records.
- Variance Report: Compare scheduled hours to actual worked hours to identify discrepancies and uncover the root causes of unexpected earnings.
- Labor Expectations Report: Monitor compliance with your region’s labor laws and take corrective action before small issues become big ones.
- Actuals Report: Get smart labor cost projections to help you keep payroll spending on budget and aligned with your target.
Tax filing with ease, for employers and employees
When tax season rolls around, making sure all employees—including current and past ones—have access to their forms can be a real hassle. But 7shifts keeps things simple, filing and distributing required tax forms (W-2s and 1099s) to employees on the restaurant’s behalf at the end of the year.
Josh Bishop, Owner of Fork & Fire: “Having two years now with 7shifts, W2s this year were—in my career—probably one of the most seamless experiences with staff getting the information they needed.”
Employee access to keep your team happy
Happy teams start with transparency. With 7shifts Payroll, employees can access their pay information anytime—right from the 7shifts app they already use to check their schedules and communicate with others. Each team member can view pay stubs, tip breakdowns, and more in real time, so they always know exactly what they’re earning and why.
Kevin Yu, Owner of 2d Restaurant: “[7shifts] gives them a clear overview of their pay and also the benefits the company has to offer—such as time off requests, time off balance, and paid time off. It definitely would help with the retention of our team members, compared to other platforms, which do not offer such functions.”
Other standout features of 7shifts Payroll
Flexibility of payment: With 7shifts Payroll, restaurants can also choose how they want to pay their employees—be it through direct deposit or paper checks.
Benefits marketplace: Restaurants also have access to 401(k) plans, Workers’ Compensation, and health benefits through our preferred partners, which are integrated directly with 7shifts Payroll.
Free implementation & dedicated support: The platform also migrates existing year-end payroll data over for free when switching from another provider. Plus, restaurants have access to a Payroll Specialist to guide them through the setup from end to end.
7shifts Payroll: Built to scale with restaurant growth
7shifts Payroll is also built to support restaurants at every stage of growth—from single-location spots to multi-unit franchises. Here are a few examples of how different types of restaurants use the platform to simplify payroll, save time, and run smoother operations overall:
| Restaurant | Size | How 7shifts Payroll helped |
| 2d Restaurant | 1 location (independent) | Time spent on payroll decreased to 20 to 25 minutes per week—when it used to take 3 to 5 hours. |
| The Kookaburra Coffee | 9 locations (multi-unit chain) | The integration between Square POS and 7shifts for tip pooling eliminated manual uploads, reducing payroll errors. |
| Toastique | 50+ locations (franchise brand) | The franchise brand adopted 7shifts as its preferred payroll vendor, using it to pay 550+ employees over 700+ payroll cycles. |
Multi-EIN compatible
Oftentimes, restaurant groups operate multiple locations under separate Employer Identification Numbers (EINs) for tax, compliance, or financial flexibility. But managing payroll across all those entities can quickly get complicated.
That’s another reason why 7shifts Payroll stands out. The platform’s multi-EIN payroll feature simplifies payroll for multi-location restaurants by letting you:
- Run payroll separately for each EIN
- Manage tax filings and reports by EIN
- Pay from different bank accounts per EIN
And the best part? You can manage it all from a single 7shifts login. That means one centralized platform for payroll, scheduling, and operations—making it easy to scale your business without adding extra administrative work.
Learn more about how 7shifts supports multi-unit operations!
How much does 7shifts Payroll cost?
7shifts Payroll starts at $39.99 per month, per location, plus $6 per employee paid. It can be added to any paid 7shifts plan, with free implementation and employee onboarding included. Book a demo today to see how easy running payroll can be.
If you aren’t currently on 7shifts, the platform offers a 14-day free trial of the Pro plan—no credit card or commitment required. Visit our pricing page for more details on each plan’s features, as well as additional features, payroll, and scheduling.
Manage your team from one app
See why 1.5 million restaurant workers use 7shifts for scheduling, payroll, and tip management.
Frequently asked questions: Best restaurant payroll software
What is the best restaurant payroll software for hourly employees?
For hourly restaurant employees, the best payroll software is one that’s accurate, fast, and built for the way restaurants actually work—and that’s 7shifts. The platform automatically pulls in hours from time clocks, accounts for overtime and multiple wage rates, and manages tips with precision. This ensures every hourly team member gets paid correctly and on time, every time.
What is the most affordable restaurant payroll software for a small business?
7shifts Payroll is built specifically for restaurants—including small and growing businesses. Because it connects directly to scheduling, time tracking, and tip pooling within 7shifts, you eliminate the need (and cost) of juggling multiple platforms. It’s one of the most affordable payroll options on the market, available as an add-on for $39.99 per month (plus $6 per employee paid) to your existing 7shifts plan.
But beyond affordability, 7shifts Payroll often pays for itself. By automating your processes, operators save hours of admin time every week—and gain better visibility into labor costs. That means smarter decisions, fewer errors, and more money back in your pocket.
What’s the best payroll software for restaurants with multiple locations?
For multi-location operators, 7shifts Payroll simplifies payroll management across all stores. You can manage multiple EINs, location-based tax filings, and team rosters from one dashboard. Combined with 7shifts’ labor forecasting and reporting, it ensures each location stays compliant and on budget—while giving operators a single source of truth for labor and payroll data.
What restaurant payroll software integrates well with time tracking systems?
Because 7shifts Payroll is fully integrated with 7punches (as well as many leading third-party time clocks), all hours worked flow automatically into payroll—no exporting or manual data entry required. This connection ensures every punch and break is reflected in employees’ pay, reducing errors and saving hours of admin time every pay period.
What is the best restaurant payroll software for handling tip calculations?
7shifts Payroll handles the full complexity of restaurant pay, including tip pooling, tip credits, and multi-role pay rates. Tips collected in the 7shifts Tip Pooling tool flow directly into payroll, ensuring accurate payouts and compliance with local and federal wage laws.
Can you recommend restaurant payroll software that handles complex wage requirements?
7shifts Payroll was explicitly built to manage complex wage structures common in restaurants, like varying hourly rates, overtime rules, and dual roles. Whether your team works front-of-house, back-of-house, or across multiple departments, the platform automatically applies the correct rates, tip credits, and taxes to ensure every paycheck is accurate.
What restaurant payroll software is best for managing high employee turnover?
In an industry with high turnover, 7shifts Payroll makes onboarding and offboarding effortless. New hires can complete their payroll setup—such as tax forms and direct deposit information—right in the app. When employees leave, 7shifts automatically ensures final pay and tax reporting are accurate, reducing compliance risk and administrative headaches.
But more than that, the platform helps reduce turnover by making it easy for employees to access everything they need—from their schedules to their pay—all in one place, right from their phones.
More than a payroll software—an all-in-one platform
With 7shifts Payroll, you’ll do more than just cut checks. You’ll connect every part of your restaurant’s operations—from scheduling and time tracking to tip management and compliance—into one platform that’s built for the way restaurants actually run.
With the full suite of 7shifts tools:
- Restaurants save 79 hours per month
- Restaurants cut $2,100 in costs per month
- Restaurants increase tea retention by 13%
Ready to simplify payroll? Book a demo today and see how 7shifts can make payday the easiest day of the week.
Manage your team from one app
See why 1.5 million restaurant workers use 7shifts for scheduling, payroll, and tip management.
Jessica Ho, Content Marketing Specialist
Jessica Ho
Content Marketing Specialist
Hi, I'm Jessica, Content Marketing Specialist at 7shifts! I'm writing about all things related to the restaurant industry.
