Pizza Today - January 2018 - 41

to correct any payroll mistakes.
* PENALTIES. Failing to comply with
tax laws can result in penalties levied
by the IRS and state departments of
revenue.
If you choose to do payroll
in-house, it's a complicated
and daunting task, says Philip
Horrisberger, director of channel
marketing for Paychex, a provider of
payroll and human resources services
to businesses. "One misplaced
decimal point can present a big
problem to the business or employee
or both, depending on the nature of
the mistake," Horrisberger says.
Some restaurants combine
in-house preparation with minimal
outsourcing. Enoteca La Storia,
which has two locations, one in Los
Gatos, California, and the other in
downtown San Jose, does its own
payroll for more than 70 employees
but hires Paychex to process the
checks.
"One-hundred percent
outsourcing is great if you can
afford it, but most small business
owners can't," says Miyuki One
Bear, general manager at Enoteca
La Storia Downtown. "Data entry
on payroll is time consuming and
takes extreme focus, which is hard
when you are also running a busy
restaurant with phones ringing
and guests and employees needing
attention."
SO, HOW MUCH WORK goes into
in-house payroll, and is it worth it
to outsource? Here are three factors
to consider when choosing the best
way to tackle payroll.
* COST AND TIME. Doing payroll
in-house is a big job. "Every pay
period, you must calculate wages,
print, sign and distribute checks,
create reports and prepare and pay
payroll taxes," says Horrisberger.
Even though Enoteca La Storia
outsources check processing, One
Bear still spends around four hours

per pay period inputting hours,
commissions and tips in addition
to three hours per week on payroll
maintenance like updating raises,
reviewing time cards and other tasks.
To save time if you're doing
payroll in-house, One Bear
recommends staying on top of
small details on a daily basis to
avoid payroll day overload. Use
personnel action forms for things
like address changes, deductions
and time off so the information is
easily communicated to the payroll
person.
Franco Francese, owner of
Mattone Restaurant and Bar in
La Grange, Illinois, says he spends
about two hours per week logging
in hours and pay rates for about
40 employees through Paychex
software. Outsourcing costs his
restaurant $60 per bi-weekly pay
period. "I would not be able to move
this function in-house given the size
of our company," says Francese.
Smaller pizzerias can also benefit
from outsourcing. GetPayroll
provides payroll services starting
at $30 per payroll period for one
to five employees, says Shelby
Williams, GetPayroll's marketing
coordinator.
* SECURITY. A payroll provider
should provide a secure, cloudbased system to store sensitive
employee and company data, says
Horrisberger. The provider should
also have backup systems in place
in case of failure, multiple server
locations and employ the most
recent technology to protect data.
* REGULARTORY COMPLIANCE. Most
restaurant owners aren't up-todate on tax guidelines and need a
reliable payroll provider that keeps
them compliant with the IRS, says
Williams. "Tax codes and IRS
guidelines are constantly changing,"
she says. "For instance, a few of
our clients before coming to us
had issues with tax codes as well as

misclassification of employees."
Ultimately, your payroll choices
may come down to how much time
you want to devote to back office
management duties and how much
you're willing to spend to turn the
task over to an expert.
"If you have five employees, you
can learn enough about payroll, taxes,
state, local and federal laws to do it
yourself," says Westcott. "Sure, you're
going to save a chunk of money. But
you are also going to be spending
your time on that work at least twice
a month and most likely much more."
FIVE TIPS FOR CHOOSING A PAYROLL
PROCESSING SERVICE

1. Get a referral from another
restaurant or small business owner
that you trust.
2. Consult a CPA and/or tax
attorney to find out which services
you need.
3. Before shopping for a payroll
processor, make a list of which
services work for your pizzeria. For
example, do you need complete
payroll processing or partial
services such as check printing and
distribution? What about direct
deposit, tax filing and employee
online access?
3. Pay only for services you
actually need. Don't get "bundled"
into a package with human
resources and benefits services you
don't really need.
4. Ask about extra fees. Some
companies charge additional fees
on top of what you pay them to
process payroll. There may be fees
for payroll adjustments, emergency
paycheck issuance, direct deposit,
adding employees or year-end tax
forms. Be sure to get information
about all extra fees in writing. n
DEB HIPP is a freelance writer who
routintely covers a variety of topics for
news and trade publications.

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