9 Best Payroll Software for Restaurants of 2026

7shifts Payroll is the pick for restaurants that want restaurant-specific payroll without being tied to one POS. It sits on top of 7shifts scheduling and time clocking, so the hours managers approve are the hours that get paid, and 7shifts calculates wages and tips automatically. The Tip Management module calculates and distributes tips, prompts staff to declare cash tips and sends the totals to payroll for payment or taxation. Pricing is $39.99 a month per location plus $6 per employee paid, with unlimited regular and off-cycle runs and free implementation. The cost adds up in layers, though: payroll has to sit on a paid 7shifts plan, and tip management is either a separate module or part of the top plan. Payroll also works only for US restaurants. For a group already scheduling in 7shifts, keeping schedules, punches, tips and pay in one app removes the export step that causes most tip errors.

Toast Payroll ranks first for restaurants that already ring sales on Toast, because tips never leave the system that recorded them. Hours and tips flow from the POS into payroll, and the tip pooling engine splits pools across front of house, back of house or any custom rule you set. Toast also calculates overtime across locations and job types, handles employees who work several roles at different rates, and applies tip makeup to minimum wage. Before a run, it flags auto clock-outs and unapproved tips, and Auto Payroll can process the cycle once those flags are cleared. Toast files federal, state and local payroll taxes and says it will cover fines up to $4,000 if your first quarterly filing is not accepted, with terms. The published entry point is a POS and payroll bundle at $69 a month plus $9 per employee. The catch is lock-in: payroll is built for Toast POS customers, so a restaurant on another register should look elsewhere on this list.

Homebase Payroll is the value pick for small restaurants that pay an hourly crew from a time clock. Payroll runs straight from Homebase timesheets and accounts for multiple wage rates, tip pools, break rules, overtime and PTO, and the system calculates missed break pay automatically, which matters in states with strict meal break laws. The Tip Manager add-on, at $25 per location a month, pulls tips from your POS, calculates the pool and adds each share to the timesheet. Payroll itself is $49 a month plus $6 per active employee with unlimited runs, tax filing, W-2s and 1099s included, and it can be added to the free Basic plan for one location with up to 10 employees. A payroll expert migrates your data for free. The trade-off is that tip pooling from the POS costs extra, and bigger teams outgrow the free scheduling plan quickly. Homebase also lacks the deep POS tie-in that Toast has.

Square Payroll is the low-cost choice for restaurants and cafes that already take payments on Square. It imports timecards and tips from Square POS into the payroll run, handles multiple pay rates, bonuses and tips, and calculates, withholds and files federal and state payroll taxes, including state unemployment where it applies. Staff can be paid by direct deposit, manual check or Cash App. The full-service plan is $35 a month plus $6 per person paid, so a 12-person cafe pays about $107 a month, the lowest published figure among the full-service options here. There is no long-term contract. The limits show up in tip handling: Square imports tips, but its payroll pages do not describe a tip pooling engine like Toast's or Homebase's, so pooled shares may need to be worked out before the run. HR tools are also lighter than at Gusto or OnPay.

Gusto is a general payroll platform, but it handles restaurant pay better than most generalists. Admins enter cash tips, paycheck tips and distributed service charges as separate earning types, so each is taxed and reported correctly, and Gusto builds in compliance for tipped minimum wage workers. A FICA tip credit report and support for Treasury Tipped Occupation Codes help with the new tip deduction rules. Gusto's time tools support multiple pay rates and locations per employee with overtime and tip tracking, and it connects to 7shifts and other POS and time systems. Simple costs $49 a month plus $6 per person, but it covers one state only and lacks the time tracking in Plus at $80 plus $12. The main gap for this angle is tip pooling: Gusto records tips, but the pool math has to come from your POS or scheduling tool.

OnPay suits independent restaurants and bars that want tipped payroll done correctly without paying for a restaurant suite. Its restaurant plan calculates overtime, tips and the minimum wage rules for tipped staff, automates tax filings and payments including Form 8846 for the FICA tip credit, and lets you record tips as a separate pay item for clean records. Hours sync from time tracking software with one click or can be entered by hand, and new hires self-onboard and e-sign their I-9 and W-4. Pricing is one plan at $49 a month plus $6 per person, with unlimited runs, free migration and no fees for changes or cancellations. Pay-as-you-go workers' comp is a useful extra for a business with seasonal swings. What OnPay lacks for this angle is any tip pooling engine or POS tip import, so pooled amounts must be worked out elsewhere and keyed in.

Roll by ADP is the mobile-first option for a small restaurant or food truck owner who would rather run payroll from a phone than a back office PC. You chat with the app to run payroll, and it supports tipped wages with both cash and charged tips, calculates and pays taxes in all 50 states, and offers same-day and next-day direct deposit. It tracks worker hours, runs AI-driven error checks before each run, and syncs with QuickBooks Online. There is one plan at $59 a month plus $7 per employee, with unlimited payroll, 24/7 support and no long-term contract, and ADP was offering three months free when we checked. The downsides for restaurants are clear: there is no tip pooling, no POS tip import and the $7 per employee fee is the highest published rate here, so a 20-person crew pays about $199 a month.

Restaurant365 Payroll is built for restaurant groups where payroll is one piece of a full back office. Hours flow from the POS, taxes are calculated, filed and paid at federal, state and local levels, and every pay run posts entries straight to the Restaurant365 general ledger, so labor shows up in the P&L without a separate import. The Tip Automation module tracks, allocates and reports tips, and Restaurant365's pricing page lists tip pooling and wage calculations among its payroll and HR features. Managers can set pay rates, taxes and deductions across all locations from one place, which suits franchise and multi-unit operators. The downside is cost visibility and fit: Restaurant365 does not publish payroll prices, and its strength is the link with its own accounting and inventory tools. A single cafe would pay for a suite it does not use, and setup is heavier than with Homebase or Square.

RUN Powered by ADP is the established choice for restaurants that value compliance support and HR services over restaurant-specific tip tools. The platform automates payroll calculations, checks for errors before you submit and shows the next payroll date when you log in. Packages step up from Essential Payroll, with tax filing and automated recurring payroll, to Enhanced, which adds State Unemployment Insurance services, background checks and wage garnishment processing, then Complete and HR Pro with live HR support and handbook tools. Support from payroll specialists is available 24/7, and ADP was offering up to six months of free payroll with terms when we checked. For this list's angle, RUN falls short on documentation: the product page does not describe tip pooling or POS tip import, and every package is priced by quote, so you cannot compare costs up front. It ranks last here because tip-heavy restaurants have better documented options.