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Payroll Processing

Integrated payroll that connects time tracking, tips, and wages seamlessly.

Overview​

The payroll system provides:

  • Time Integration - Automatic import from time clock
  • Tip Distribution - Tips included in paychecks
  • Tax Calculations - Federal, state, and local taxes
  • Direct Deposit - ACH payments to employees
  • Compliance - W-2s, 941 filings, new hire reporting

For advanced features like garnishments, multi-state taxes, off-cycle payroll, and year-end compliance, see Advanced Payroll.

Accessing Payroll​

  1. Go to Manager > Staff > Payroll
  2. Or say "Hey Maximus, show payroll"

Payroll Dashboard​

┌─────────────────────────────────────────────────────────────────┐
│  PAYROLL                                    [Run Payroll]       │
├─────────────────────────────────────────────────────────────────┤
│                                                                  │
│  Current Period: [dates]                                        │
│  Status: [status]                                               │
│                                                                  │
│  SUMMARY                                                        │
│  ───────────────────────────────────────────────────────────    │
│  Employees:       --                                            │
│  Total Hours:     --                                            │
│  Gross Pay:       $--                                           │
│  Taxes:           $--                                           │
│  Net Pay:         $--                                           │
│                                                                  │
│  RECENT RUNS                                                    │
│  ───────────────────────────────────────────────────────────    │
│  [Date]    [Period]    [Status]    [Amount]    [View]           │
│                                                                  │
└─────────────────────────────────────────────────────────────────┘

Pay Periods​

Supported Schedules​

ScheduleFrequencyCommon Use
WeeklyEvery weekHourly staff
Bi-WeeklyEvery 2 weeksMost common
Semi-Monthly1st & 15thSalaried staff
MonthlyOnce per monthManagement

Configuring Pay Periods​

  1. Go to Settings > Payroll > Pay Periods
  2. Select pay frequency
  3. Set period start day
  4. Configure pay date offset
  5. Save

Running Payroll​

Step 1: Review Time Records​

Before running payroll:

  1. Go to Time Clock review
  2. Verify all clock records are accurate
  3. Approve or correct any exceptions
  4. Ensure all employees have complete records

Step 2: Initiate Payroll Run​

  1. Click Run Payroll
  2. Select pay period
  3. System imports time data automatically
  4. System imports tip distributions automatically

Step 3: Review Calculations​

┌─────────────────────────────────────────────────────────────────┐
│  PAYROLL REVIEW                              [← Back] [Approve] │
├─────────────────────────────────────────────────────────────────┤
│                                                                  │
│  Pay Period: [dates]                                            │
│                                                                  │
│  Employee       Hours    Tips     Gross    Taxes    Net        │
│  ───────────────────────────────────────────────────────────    │
│  Sarah M.       40.0     $--      $--      $--      $--        │
│  James K.       38.5     $--      $--      $--      $--        │
│  Maria L.       42.5     $--      $--      $--      $--        │
│  Carlos R.      45.0     $--      $--      $--      $--        │
│                                                                  │
│  TOTALS         ---      $--      $--      $--      $--        │
│                                                                  │
│  [View Details]  [Make Adjustment]  [Export Preview]            │
│                                                                  │
└─────────────────────────────────────────────────────────────────┘

Review for each employee:

  • Hours worked (regular and overtime)
  • Tips credited
  • Tax calculations
  • Deductions
  • Net pay

Step 4: Approve and Process​

  1. Click Approve after review
  2. Confirm payment method per employee
  3. Click Process Payments
  4. System initiates direct deposits

Wage Configuration​

Setting Pay Rates​

  1. Go to employee profile
  2. Click Compensation tab
  3. Set base pay rate
  4. Add additional rates if needed

Rate Types​

TypeDescription
Base RateStandard hourly rate
Role RateRate tied to specific role
Shift DifferentialPremium for night/weekend
OvertimeAutomatic calculation
HolidayHoliday pay multiplier

Multiple Rates​

Employees can have different rates for different roles:

RoleRateNotes
Server$15/hourRegular shifts
Trainer$15+$2/hourWhen training
Bartender$15+$3/hourBar shifts

Overtime Rules​

RuleDescription
WeeklyOver 40 hours/week
DailyOver 8 hours/day (CA)
Double TimeOver 12 hours (varies by state)
7th DayWorking 7 consecutive days

System applies state-specific overtime rules automatically.

Time Integration​

Automatic Import​

Time records flow automatically:

  1. Employee clocks in/out
  2. Records appear in payroll
  3. Breaks are calculated
  4. Overtime is flagged

Manual Adjustments​

To adjust time for payroll:

  1. Find the time record
  2. Click Adjust for Payroll
  3. Enter correction
  4. Add reason
  5. Manager approval required

PTO and Sick Time​

TypeHandling
PTOPaid at regular rate
SickPaid per sick leave policy
HolidayPaid at holiday rate

Tip Integration​

How Tips Flow to Payroll​

  1. Tips collected throughout pay period
  2. Tip pools calculated and distributed
  3. Distributions imported to payroll
  4. Tips added to gross pay

Tip Credit​

ComponentDescription
Cash TipsReported by employee
Credit TipsAutomatically tracked
Tip CreditApplied against minimum wage
Makeup PayIf tips don't meet minimum

Minimum Wage Enforcement​

System automatically ensures minimum wage compliance:

FeatureDescription
State MinimumTracks minimum wage per state
Local MinimumTracks city/county minimums
Tip Credit LimitsCalculates maximum tip credit
Makeup PayAuto-adds if tips + wage < minimum
AlertsFlags employees below threshold

When calculating pay:

  1. System checks applicable minimum wage
  2. Compares hourly rate + tips to minimum
  3. Automatically adds makeup pay if needed
  4. Records compliance on pay stub

Tip Reporting​

System generates:

  • Allocated tips for reporting
  • Form 8027 data (large food establishments)
  • Individual tip income records

Tax Calculations​

Federal Taxes​

TaxRateNotes
Federal IncomeBased on W-4Withholding per tax tables
Social SecuritySet by IRSEmployee + Employer
MedicareSet by IRSEmployee + Employer
FUTASet by IRSEmployer only

State Taxes​

  • All 50 states supported
  • State income tax calculated automatically
  • State unemployment (SUTA) calculated
  • Local taxes where applicable

Tax Setup​

  1. Go to Settings > Payroll > Taxes
  2. Verify business locations
  3. Set up state accounts
  4. Configure local tax requirements

Deductions​

Pre-Tax Deductions​

DeductionDescription
401(k)Retirement contributions
HSAHealth Savings Account
FSAFlexible Spending Account
Health InsurancePre-tax premium portion

Post-Tax Deductions​

DeductionDescription
Roth 401(k)After-tax retirement
Loan RepaymentEmployee loans
UniformUniform costs
Meal DeductionsEmployee meals

Setting Up Deductions​

  1. Go to employee profile
  2. Click Deductions tab
  3. Add deduction type
  4. Set amount or percentage
  5. Set frequency
  6. Save

Payment Methods​

Direct Deposit​

Most employees receive pay via ACH:

  1. Employee provides bank info
  2. Info encrypted and stored securely
  3. Payments initiated on pay date
  4. Funds arrive per bank processing time

Setting Up Direct Deposit​

  1. Employee goes to self-service
  2. Enters bank routing and account number
  3. Submits verification deposit info
  4. Account verified and active

Alternative Methods​

MethodUse Case
Paper CheckNo bank account
Pay CardAlternative to checks
Multiple AccountsSplit deposits

Pay Stubs​

Employee Access​

Employees can view pay stubs:

  1. Employee opens app/portal
  2. Goes to Pay section
  3. Views current and past pay stubs
  4. Downloads PDF if needed

Pay Stub Contents​

SectionIncludes
EarningsHours, rates, gross pay
TipsCash tips, credit tips
TaxesFederal, state, local
DeductionsPre-tax, post-tax
Net PayTake-home amount
YTD TotalsYear-to-date summary

Voice Commands​

TaskSay
Run payroll"Hey Maximus, run payroll"
Check status"Hey Maximus, payroll status"
View pay stubs"Hey Maximus, show my pay stubs"
Labor cost"Hey Maximus, labor cost this week"

Best Practices​

Before Each Run​

  1. Verify time records - Check for missing punches
  2. Review exceptions - Approve overtime and adjustments
  3. Check deductions - Ensure accuracy
  4. Confirm tip data - Verify distributions

After Each Run​

  1. Review summary - Check totals
  2. Archive records - Keep for compliance
  3. Communicate - Notify employees of pay dates

Compliance​

  1. Keep records - Required retention periods
  2. Stay current - Tax table updates automatic
  3. File on time - Quarterly and annual deadlines
  4. Verify calculations - Spot check regularly
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