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Run the Payroll Fee Auditor →Blog · Payroll Management · Restaurant
Restaurants & Hospitality: How to Switch Payroll Providers (2026)
Switching payroll providers at a restaurant means moving year-to-date wages and taxes per employee, every pay code for tip credit and tip pooling, high turnover and multiple pay rates, the exemption records for servers and line cooks, and the retained records the law requires. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
What has to migrate from a restaurant
Year-to-date gross, taxes and deductions per employee so the W-2 is one form at year end; every pay code, tip credit and tip pooling, high turnover, multiple pay rates and split shift premiums, rebuilt with the same taxability; each state's withholding and unemployment account numbers and rates; garnishment orders with balances; direct deposit authorizations; and the exemption documentation for servers and line cooks.
Form 8027 for calendar year 2025 is due March 2, 2026 on paper or March 31, 2026 if filed electronically, and records supporting the return and any tip allocations must be kept for 3 years after the due date.
Timing the cutover
A quarter boundary is the cleanest cutover because the old provider files a final 941 for its quarter and the new one starts fresh, with no Schedule D reconciliation. Mid-quarter switches work but require the outgoing provider's tax filings to be reconciled before the first new run. Live payroll on BEG is 3 to 5 business days from signing; the migration of restaurant pay codes is done before that first run, not after.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- Form 8027 for calendar year 2025 is due March 2, 2026 on paper or March 31, 2026 if filed electronically, and records supporting the return and any tip allocations must be kept for 3 years after the due date. [IRS Instructions for Form 8027 (2025)]
Read the full guide to how to switch payroll providers, and the rest of the restaurant payroll library.
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Frequently Asked Questions
When is the best time for a restaurant to switch payroll providers?
At a quarter boundary, ideally January 1 so the W-2 year is clean. Mid-quarter is workable with a reconciliation of the outgoing provider's deposits and filings first.
What restaurant data is most often lost in a switch?
The pay code configuration for tip credit and tip pooling and high turnover and the exemption records for servers and line cooks. Year-to-date figures usually move; the industry-specific setup is what gets rebuilt wrong.
What does managed payroll cost for a restaurant?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Tip credit and tip pooling, high turnover and multiple pay rates are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Restaurants & Hospitality. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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