Payroll might not be the flashiest part of running a restaurant, but it touches everything.
Your staff count on accurate paychecks to trust you and stick around. The IRS and state agencies expect precise reporting. And if you get it wrong, the penalties can cut into margins that are already thin.
The reality is that payroll for restaurants is more layered than in most industries.
You are managing tipped wages that need special treatment, turnover that never seems to slow down, seasonal staff who come and go, and compliance rules that seem to rewrite themselves every year.
Each piece on its own is manageable. Together, they create the kind of complexity that keeps owners and managers on their toes.
That is why we put together this 2025 payroll checklist for restaurants. Think of it as a practical guide to help you check the boxes that matter, avoid the costly oversights, and head into year-end with fewer headaches.
Restaurant Payroll Checklist for 2025
1. Review employee information
Make sure all employee records are correct, including names, addresses, Social Security numbers, and hire or termination dates. Errors here can create problems when it is time to file W-2s.
2. Confirm tip reporting
Restaurants are required to track and report tips properly. Double-check that all tips have been recorded and reported accurately so both employees and the business stay compliant.
3. Update benefit balances
If you offer sick time, vacation, or PTO, verify balances for each employee and carry forward the correct amounts into the new year.
4. Report bonuses
Any holiday or year-end bonuses must be included in payroll as wages before your last payroll of the year.
5. Check shareholder and fringe benefits
For S Corps, health insurance premiums paid for shareholders need to be reported. The same goes for other taxable benefits such as employer HSA contributions, moving expenses, or company-provided vehicles.
6. Review retirement plan deductions
If employees have made contributions to retirement plans like a 401(k), SIMPLE, or SEP, make sure deductions and employer matches are correctly recorded.
7. Verify health insurance reporting
If you provide health insurance, record the total premiums paid for each employee during 2025.
8. Prepare for compliance filings
Restaurants face unique compliance requirements, from payroll tax filings to workers’ comp audits. Staying ahead of these avoids last-minute surprises.
How Atlantic Payroll helps restaurants
Checking off this list takes time, and the work does not stop at year-end. That is why so many Cape Cod restaurants rely on Atlantic Payroll to handle payroll from start to finish.
- We pay your employees accurately and on time with direct deposit and online access to pay stubs and tax documents.
- We track PTO, handle tip reporting, and make sure benefit deductions are set up correctly.
- We take care of payroll tax filings, compliance requirements, and year-end forms so you never miss a deadline.
- We provide real local support. When you have a question, you speak with a payroll specialist who knows your business, not a call center.
What our Restaurant Clients say
“Atlantic Payroll makes payroll a smooth and stress free process. Switching was one of the smartest decisions I have made for my business.”
— Sarah Wilcox, Owner, Eastham Superette
“I have used Atlantic Payroll for many years. They handle all my payroll needs, including tax matters, in a prompt and professional way. It is great to deal with a local company that knows how to deliver excellent support.”
— Vernon Smith, Owner, Brewster Fish House Restaurant
Make Payroll for Restaurants easier in 2025
Payroll for restaurants is complicated, but it does not have to be overwhelming.
With the right systems and support, your employees are paid accurately, your taxes are filed on time, and your business stays compliant.
Atlantic Payroll helps restaurants across Cape Cod take payroll off their plate so they can focus on running their business.
If you want 2025 to be the year payroll stops being a headache, get in touch today to schedule a discovery call.