As restaurants and SMBs continue to embrace technology to streamline operations, point-of-sale (POS) systems have emerged as the central hub for managing critical business functions. From payments and inventory to employee scheduling, POS platforms like Toast and Square have become deeply integrated into the day-to-day workings of restaurants of all sizes.
Given this central role, POS systems are an ideal platform for embedding payroll services. By bundling payroll with the existing POS infrastructure, SMBs can benefit from a truly all-in-one solution for managing their finances and operations.
Streamlining the Payroll Process
One of the key advantages of embedding payroll into the POS is the ability to streamline the payroll process. By automatically importing employee hours worked from the POS system, the payroll software eliminates the need for manual data entry, saving time and reducing errors. This is especially beneficial for restaurants with multiple locations or a large number of hourly employees.
The POS can also handle other payroll-related functions, such as tip tracking and allocation. This ensures that tips are properly accounted for and distributed to employees, in compliance with labor laws.
Improving Compliance and Reporting
Integrating payroll with the POS also helps restaurants stay compliant with labor laws and regulations. The payroll software can monitor compliance with rules around minimum wage, overtime, tip credits, and more. It also provides detailed reporting to track key metrics, such as labor costs as a percentage of revenue.
Enhancing the Employee Experience
Embedded payroll solutions can also improve the employee experience by streamlining onboarding and providing easy access to payroll information. New hires can complete tax forms, direct deposit info, and other documents digitally, with the data automatically syncing to the payroll system. Employees can also access their pay stubs and W-2s through the POS platform, reducing the need for paper records.
Generating Additional Revenue
For POS providers like Toast and Square, embedding payroll creates an opportunity to generate additional revenue. Restaurants are already spending hundreds of dollars per year on payroll services, so bundling this functionality into the POS they already use is a convenient and cost-effective solution. By offering payroll as part of their platform, POS providers can increase customer loyalty and open up new revenue streams.
In conclusion, POS systems are an ideal platform for embedded payroll due to their central role in restaurant operations, ability to streamline payroll processes, and potential to increase revenue for the POS provider. By integrating these services, restaurants can benefit from a truly all-in-one solution that saves time, improves compliance, and enhances the employee experience.
Rollfi can seamlessly launch a custom branded payroll feature with that can help you increase retention and open up new revenue streams. We did it for Sky Systemz and we would love to help you too!
About Rollfi
Rollfi provides the fastest way for Banks, Vertical SaaS companies, Accounting Firms, and Fintechs to integrate payroll and benefits into their offerings through our white-label solutions + robust APIs. By leveraging Rollfi’s infrastructure, businesses can unlock new revenue streams, increase customer retention, and access valuable payroll data insights. With rapid deployment and comprehensive coverage, Rollfi transforms your platform into a one-stop-shop for essential services, driving growth and enhancing customer satisfaction.
