Teams where most of the pay comes from tips: tip pooling, cash tips, service charges and paying tips fast.
Weigh more here than in the overall ranking: tip pooling and tip-outs, declared cash tips, tip credit and minimum wage make-up, and fastest direct deposit included.
The ranking
Square Payroll
By Square
Square's payroll, billed monthly plus a fee per person paid. It files federal, state and supported local taxes, pays its own filing errors, and imports tips from Square's POS.
RTC SCORE
7.4
#1 for Bars and nightclubs
Pros
- Published price ($35 a month plus $6 per person paid), billed month to month, with unlimited pay runs.
- Square pays penalties caused by its own filing errors, in all 50 states and DC.
- Card tips and declared cash tips flow in from Square's POS, and employees can get paid early at no cost to you.
Cons
- Tips import only from Square's own POS.
- No documented tip credit make-up and no Form 8846 report.
- Live support only on weekdays, 6 a.m. to 6 p.m. Pacific.
- Initial term
- Month to month
Strongest on 12-month payroll cost (reference restaurant), who files payroll taxes, and published pricing. Weakest on POS integrations.
OnPay Payroll
By OnPay
Payroll with one plan at $49 a month plus $6 per worker paid that month, with tax filings, multi-state payroll and year-end forms included, and documented restaurant features such as tip credit make-up and Form 8846.
RTC SCORE
7.1
#2 for Bars and nightclubs
Pros
- One published price: $49 a month plus $6 per worker paid that month, with federal, state and local tax filings, all 50 states and W-2 and 1099 forms included.
- Tip credit make-up is calculated automatically, and Form 8846 comes filled in for your tax return.
- Fields for qualified tips, tipped occupation codes and qualified overtime are already in each pay run for 2026.
Cons
- No POS integration: tips and hours are entered in each pay run or come from a time tracking app.
- No tip pooling and no early pay for employees.
- Direct deposit takes 2 to 4 business days depending on OnPay's risk review, with no next-day option.
- Initial term
- Month to month
Strongest on 12-month payroll cost (reference restaurant), who files payroll taxes, and tip credit and minimum wage make-up. Weakest on POS integrations.
7shifts Payroll
By 7shifts
Payroll inside 7shifts, the restaurant scheduling app: $39.99 per location plus $6 per employee paid, on top of a paid 7shifts plan. It calculates tip credit make-up and imports tips from several POS systems, including Shift4 POS.
RTC SCORE
6.9
#3 for Bars and nightclubs
Pros
- Automatic tip credit make-up when your POS sends the tips, with tip pooling built in.
- Imports tips and hours from Toast, Square, Clover, SpotOn, Heartland, Shift4 POS and others.
- Files federal, state and local taxes in all 50 states and DC, with unlimited pay runs and no setup fee.
Cons
- You also need a paid 7shifts plan per location, and its price wasn't readable on the site.
- No published guarantee for tax penalties and no Form 8846 report.
- New accounts get paid in three business days, and there's a list of per-event fees.
- Initial term
- Month to month
Strongest on who files payroll taxes, tip credit and minimum wage make-up, and POS integrations. Weakest on 2026 W-2 ready for No Tax on Tips.
Homebase Payroll
By Homebase
Payroll added to Homebase's scheduling and time clock app, at $49 a month plus $6 per employee paid. It files federal, state and local taxes, and imports tips from Toast, Square and Clover through its Tip Manager.
RTC SCORE
6.9
#4 for Bars and nightclubs
Pros
- Published price, unlimited pay runs and no setup fee; billed month to month.
- Scheduling, time tracking and payroll in one app, with live support 7 a.m. to 7 p.m. Central every day.
- Child support is remitted for you, and employees can cash out earned pay at no cost to you.
Cons
- Above 10 employees you also pay a team plan per location, and tip pooling is a $25 add-on per location.
- Tip credit make-up is a marketing claim without documented mechanics, and there's no Form 8846 report.
- No published guarantee for tax penalties caused by its errors.
- Initial term
- Month to month
Strongest on 12-month payroll cost (reference restaurant), who files payroll taxes, and published pricing. Weakest on 2026 W-2 ready for No Tax on Tips.
Toast Payroll & Team Management
By Toast
Toast's payroll, sold with its POS and priced by quote. It files federal, state and local taxes, calculates tip makeup by work week, pays out child support for you, and imports card and declared cash tips from Toast's POS.
RTC SCORE
5.4
#5 for Bars and nightclubs
Pros
- Tip makeup is calculated by work week, and card and declared cash tips flow in from Toast's POS.
- Gives you a FICA tip credit report for Form 8846 and has a written plan for the 2026 W-2 overtime amounts.
- Files local taxes and remits child support; employees can take PayOuts at no cost to you.
Cons
- Price, term and early termination fee come only with the quote; a 2023 public order form had 36 months.
- Billed per active employee, even if they aren't paid that month.
- Imports tips only from Toast's POS, and you file the 1099s for contractors yourself.
- Initial term
- Quote only
Strongest on who files payroll taxes, tip credit and minimum wage make-up, and time tracking. Weakest on POS integrations.
This is general information about published contracts, not legal advice: read your own contract and check with a lawyer before you sign.