ADP provides tailored payroll and HR solutions for restaurants, hotels, and food service companies, helping to streamline processes like tracking employee hours, managing turnover, and simplifying benefits. Since establishing our Hawaii office in 1998, we've become a trusted expert in the local market, serving over 1,200 restaurant locations and processing payroll for 1 in 4 workers across the islands.
Nothing in the hospitality industry is more important than time. We get that —it’s why our solutions are designed to be intuitive and easy to use. We cover all the complexities inherent to the industry, so you can confidently turn tables and rooms.
Find the best people for your business and reduce turnover through leading recruitment tools, workforce analytics, best-in-class benefits and retirement solutions.
Your workers are your lifeblood. Make their lives easier and build loyalty with flexible payment options, employee engagement tools, development training and more.
When it comes to compliance, the heat is always on. We’ll help keep you in the clear with wage and hours updates, ACA management and workers’ compensation.
Spend less time on administrative tasks and more time where you’re most needed in front or back of house. Put a dent in your to-do list with our solutions that integrate time and labor, payroll and HR systems.
Catching compliance mistakes before they occur can help to keep your doors open. From catching wage errors to finding tax credits, our solutions are built to help keep you meet your compliance obligations.
In some cases, employers in the restaurant industry can apply tips to satisfy a portion of their minimum wage obligation. This is known as a tip credit and it’s calculated by subtracting the minimum cash wage from the federal minimum wage. If employees don’t earn enough tips to reach the minimum wage, then the employer is required to pay them the difference. Note that state minimum cash wage and maximum tip credits may differ and certain states prohibit tip credits.
Restaurants, like other businesses, are required to keep payroll records, such as pay statements, time records, Forms W-4, etc. In addition, restaurant employees must track their daily tips and provide their employer with a monthly tip report for any month in which their total tips received was $20 or more. They may use IRS Form 4070 for this purpose or custom forms and electronic systems supplied by their employer.
Employees are entitled to keep any tips they receive unless they’ve entered into a valid tip-sharing, or “tip pooling,” arrangement with their coworkers. The Fair Labor Standards Act (FLSA) doesn’t limit contributions to tip pools, but an employer must notify employees in advance if there is a minimum contribution requirement. Additionally, employers may only claim tip credits on the amount of tips an employee actually receives from the tip pool.
Yes, employers must pay their portion of Social Security and Medicare taxes, as well as unemployment tax, based on their employees’ earned wages and total reported tips.
Anyone who regularly receives more than $30 per month in tips is considered a tipped employee. Examples include bartenders, waiters, valets and gaming dealers. More recently, the federal government has allowed other types of workers, such as janitors and dishwashers, to begin receiving tips through tip pools, provided certain requirements are met. Some states, however, still restrict tip pooling agreements only to those who customarily receive tips.
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