Analysis of the current payroll methods is the most critical part in finding a good automated solution which will meet the growth potential and scalability aspirations of the restaurant. Implementing an automated system will provide reporting information which will provide insights for better decision making in addition to providing stable payroll processes. This section will provide an analysis about the current risks associated with the current processes in place. According to Kavanagh, “payroll is the transactional process through which compensation is transferred to employees and federal, state, and local income and payroll taxes are withheld from employees' checks” (Kavanagh, p 470). It is thus important to research government regulations and implement changes regularly. Calculating and documenting compensation includes hours worked and tips received for each of the 300-340 full time and part time employees. According to the Internal Revenue Service Chapter 23, Employment Tax, Section 7 Employment Tax on Tip Income, “Under Treas. Reg. 31.3102–3, the employer is responsible for deducting and depositing the employee's share of social security and Medicare tax on tips. All tips…show more content… This will help the Castle’s Family Restaurant as 60% of their employees are part-time workers. Paychecks can be distributed by direct deposit into up to four accounts for each employee or using onsite printing. This payroll management service also handles payroll taxes. BenefitMall will file and pay payroll taxes and at the year end, electronically files W-2s and 1099s, which all the employees can then view online. They also have a dedicated account manager who will take care of implementation and get the technical support needed on priority as and when needed. In the next phase, an appropriate payroll vendor will be proposed to the Castle’s Family
