15760 Ventura Blvd, Suite 610 Encino, CA 91436
15760 Ventura Blvd, Suite 610 Encino, CA 91436
Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Payroll and the Restaurant Industry

The restaurant industry is an important part of the greater Los Angeles economy. From neighborhood cafes and fine bistros to trendy nightclubs, food and beverage professionals help make the city a pleasant and exciting place to live. Service industries present unique accounting challenges. Because of these challenges for payroll services Los Angeles accounting professionals need to be particularly adept. Following are some of the more common financial concerns for the restaurant industry.

The restaurant industry experiences a higher employee turnover than any other industry. Although turnover rates vary depending on the general state of the economy, they can be as high as 100% each year. Payroll professionals need to be vigilant about documenting new hires and careful about keeping records organized and accurate for up to three years after an employee has left the business.

The restaurant industry is notorious for hiring illegal immigrants. Because the industry as a whole carries this stigma, even businesses dedicated to following the rules can be investigated by Immigration. It is important for payroll to clearly show that everyone on the books is allowed to work in the United States and is being paid at least minimum wage.

Any business operating on shifts can have a complicated employee schedule. Furthermore, many restaurants, particularly in Los Angeles, allow their employees considerable flexibility to switch shifts with fellow workers. The payroll services Los Angeles offers must be able to track these changes accurately each week, making sure to pay overtime when required.

Different restaurants have different strategies for collecting, sharing, and claiming tips. Payroll accountants must understand that these differences exist and be willing to work with a specific business to create the system for tip reporting that works best for them.

Because so many of the businesses located in the City of Angels are unique, the payroll services Los Angeles receives are some of the best in the country. However, not every payroll company is familiar with the needs of every business. When looking for payroll professionals, it is important to take the time to make sure a given accounting firm will be the best fit for your business.