Best Payroll Software for Restaurants (2026): 10 Tools Compared

Restaurant payroll is harder than office payroll for one reason: tips. Cash tips, card tips, pooled tips and servers who also cover the bar at a different rate all have to land correctly on the payslip, every week. Get it wrong and you've got unhappy staff and a tax problem.

This list of ten, in no particular order and sorted alphabetically, covers POS-linked payroll, restaurant scheduling platforms, tip management and general small business payroll. I've based each description on the provider's own site, re-checked today. If rotas are your other headache, my roundup of staff scheduling apps pairs well with this list.

Restaurant payroll and tip tools side by side

Free plan reads Yes where the provider's site describes a free plan, Trial only where it offers a free trial or free first month, and No where it books demos or mentions neither.

Tool	Type	Good for	Free plan
7shifts	Restaurant scheduling and payroll	Tip pools feeding straight into payroll	Trial only
Homebase	Scheduling and payroll	Free scheduling, optional payroll and tips	Yes
Kickfin	Tip management software	Tip pools, payouts and reporting	No
OnPay	Small business payroll	Tip guidance for restaurant payroll	Trial only
Patriot Software	Small business payroll	Simple online payroll	Trial only
Push	Restaurant workforce platform	Payroll, scheduling and time tracking	No
Restaurant365	Restaurant management suite	Payroll inside a full restaurant suite	No
Square Payroll	POS-linked payroll	Tips and timecards from Square	No
Toast Payroll	POS-linked payroll	Hours and tips from Toast POS	No
Wagepoint	Canadian small business payroll	Shifts and tips for Canadian restaurants	Trial only

Ten ways to run restaurant payroll

7shifts

Best for: Restaurants that schedule staff on this platform and want custom tip pools and payroll run from the same place.

Homebase

Best for: Small restaurants that want free scheduling and time tracking first, then a payroll add-on and a tip manager that pulls POS tips into timesheets.

Kickfin

Best for: Restaurants that want tip pools calculated from POS data and sent to employees the moment a shift ends, with tip reporting for payroll.

OnPay

Best for: Small restaurants that want straightforward payroll from a provider publishing guidance on tip reporting, taxes and overtime for restaurant staff.

Patriot Software

Best for: Small restaurants wanting simple online payroll with free direct deposit and an employee portal, tried first through a 30-day trial.

Push

Best for: Restaurant operators who want payroll, hiring, scheduling and time tracking in a single restaurant-specific platform.

Restaurant365

Best for: Multi-unit restaurant groups that want payroll alongside accounting, inventory and scheduling in one restaurant-specific system.

Square Payroll

Best for: Restaurants already on Square POS that want timecards, direct tips and multiple pay rates flowing into payroll.

Toast Payroll

Best for: Restaurants running Toast POS that want payroll to take hours and tips straight from the POS, with overtime and tip rules handled.

Wagepoint

Best for: Canadian restaurants and cafes wanting a payroll provider that covers shifts and tips, with a trial before they commit.

When staff must report cash tips, according to the IRS

The IRS page on tip recordkeeping and reporting says employees generally must report their cash tips to their employer, and gives an example: cash tips received in August must be reported on or before September 10. In other words, the deadline is the 10th of the month after the tips were received. Employers must keep those tip reports and withhold and deposit taxes on tip income.

For your payroll software, that means two separate streams of tips: card tips that come through the POS, and cash tips staff declare each month. Check how each tool takes in both, and whether employees can submit their monthly tip statements digitally rather than on paper.

Tip pooling, overtime and split rates

• Tip pools: check the tool can apply your own pool rules, such as by hours worked or by role.
• Overtime: make sure overtime is worked out across every location an employee works at.
• Multiple pay rates: a server who also covers the bar needs both rates on one payslip.
• Payout timing: decide whether staff get tips at the end of the shift or with their wages.

Setting up restaurant payroll in six steps

1. Write down your tip policy, including who's in the pool and how it's split.
2. Connect your POS so card tips arrive without anyone retyping them.
3. Decide how staff will declare cash tips each month.
4. Enter every pay rate for staff who work more than one role.
5. Run one pay run alongside your current system before switching.
6. Check the first live payslips with a few staff before rolling out to everyone.

Payroll mistakes restaurants keep making

• Retyping tips from POS reports. Every manual step is a chance for an error.
• Paper tip declarations that go missing. Employers are expected to keep tip reports, so store them safely.
• Changing tip pool rules without telling staff. Put the rules in writing and share them.
• Switching providers mid-quarter. Moving at the start of a quarter keeps tax filings tidier.

Payroll's smoother when the team behind it's well organised, and my guide to managing a small team well has practical ideas for owners and managers.

Do you make restaurant payroll software? Tool makers can ask to be considered for a featured place on this list.

My plain advice on restaurant payroll

If you're already on a POS with its own payroll, start there, because tips and hours flowing straight in removes the biggest source of mistakes. If you schedule staff in a team app with payroll built in, that's the next easiest route. General small business payroll works too, as long as you've checked how it imports tips.

Before you commit, ask each provider to run one real week of your payroll, with tips, overtime and a split-rate employee. If the result doesn't match what you'd expect, keep looking.

Frequently asked questions

What payroll software suits restaurants with tips?

Look for software that imports card tips from your POS and applies your tip pool rules. POS-linked payroll and restaurant scheduling platforms often do this most smoothly.

When do employees have to report cash tips?

The IRS says by the 10th of the month after they receive them; tips received in August, for example, are reported by September 10.

Can payroll software handle tip pooling?

Many restaurant tools can, and some dedicated tip tools calculate pools from POS data. Check the tool supports your exact rules.

Is there free payroll software for restaurants?

Some scheduling apps describe a free plan, with payroll as an add-on. Most payroll providers offer a trial or a free first month instead.

Should restaurant payroll connect to my POS?

Ideally, yes. It saves retyping hours and tips, and it'll cut errors.

How do I run payroll for staff who work two roles?

Use software that supports multiple pay rates per employee and works out overtime across all their hours.