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Restaurants & Hospitality: Multi-Location Payroll Guide (2026)
Multi-location payroll for restaurants means one payroll with per-location cost centers, a state account wherever a location or a remote employee sits, headcount thresholds counted across the whole company, and the restaurant rules cited here applied at every site. BEG runs restaurant payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
Rules that change with a second restaurant location
Restaurants and fast food businesses with annual gross sales of at least $500,000 across one or more establishments are covered by the FLSA, and employees who handle goods moving in interstate commerce, such as a server processing a credit card transaction, are individually covered.
An employer that normally employed more than 10 employees on a typical business day in the preceding calendar year at a food or beverage operation where tipping is customary must file Form 8027 for each such establishment. If total reported tips for a payroll period are less than 8 percent of gross receipts, the shortfall must be allocated among directly tipped employees and shown in box 8 of Form W-2.
What is counted company-wide
OSHA recordkeeping, the ADA and Title VII, COBRA, FMLA and the ACA employer mandate all count employees across every location, so a second site can trip a threshold no single site reaches. FMLA eligibility is the exception: the 50-employee test is measured within 75 miles of the employee's own worksite. A location in a new state adds a withholding account (unless the state has no wage tax), an unemployment account, that state's minimum wage and overtime rule for servers and line cooks, and its new hire and final pay deadlines.
How the payroll is structured
One EIN, one payroll, one set of pay codes for tip credit and tip pooling, high turnover and multiple pay rates, with location as a cost center on every employee record so labor cost, tax registrations and required postings resolve by site. Separate EINs per location are a legal-entity decision, not a payroll one, and each EIN files its own 941s and W-2s.
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.
- Restaurants and fast food businesses with annual gross sales of at least $500,000 across one or more establishments are covered by the FLSA, and employees who handle goods moving in interstate commerce, such as a server processing a credit card transaction, are individually covered. [DOL Fact Sheet #2]
- An employer that normally employed more than 10 employees on a typical business day in the preceding calendar year at a food or beverage operation where tipping is customary must file Form 8027 for each such establishment. If total reported tips for a payroll period are less than 8 percent of gross receipts, the shortfall must be allocated among directly tipped employees and shown in box 8 of Form W-2. [IRS Instructions for Form 8027 (2025)]
Read the full guide to how to manage payroll in multiple states, and the rest of the restaurant payroll library.
Managed Payroll, Handled.
BEG manages payroll at $45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
Does a second restaurant location need its own payroll?
No. One payroll with location cost centers is the norm under a single EIN. A second EIN, if the entity structure requires one, files its own returns and W-2s.
Which thresholds count employees across all restaurant locations?
OSHA logs, Title VII and the ADA, COBRA, FMLA coverage and the ACA employer mandate. FMLA eligibility for an individual is measured within 75 miles of that employee's worksite.
Restaurant multi-site rule: DOL Fact Sheet #2
Restaurants and fast food businesses with annual gross sales of at least $500,000 across one or more establishments are covered by the FLSA, and employees who handle goods moving in interstate commerce, such as a server processing a credit card transaction, are individually covered.
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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