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The hospitality sector faces several day-to-day challenges; the right payroll software for hospitality helps overcome operational challenges, such as high employee turnover, variable shifts, and seasonal staffing needs by simplifying these processes.
10 Best HR Payroll Software for Hospitality Industry
The top payroll software for the hospitality industry ensures accuracy, compliance, and efficiency. A comprehensive HR and payroll software hospitality is the best way to achieve smoother operations and better workforce management.
Here’s a list of the 10 best HR payroll software for hospitality industry:
1. factoHR
factoHR is the best payroll software for the hospitality and hotel industries. It simplifies and streamlines payroll processes with a wizard-driven approach and a single data source. It automates the payroll process, saving time for other valuable tasks. factoHR’s unique mobile app empowers employees to mark their attendance, download payslips, and request leave.
Organizations can simplify complex tasks, such as salary calculations, payment processing, statutory compliance, IT deductions, ESIC, PF, and loan management. Moreover, it provides a reliable solution for these critical functions.
Key Features
| View salary and access gross earnings summaries. | Download the payslip from the last month or year in PDF format. |
| Choose a payslip format that suits your organization’s needs. | Utilize a Wizard-driven salary process for guidance at every step. |
| Deposit employees’ salaries directly into their bank accounts. | View the income tax and compare it with the actual deductions. |
| Process salary with multiple payroll groups according to employees’ payroll cycle. | Generate all kinds of income tax reports and forms. |
| Pay incentives according to employees’ performance. | Manage advance and loan management through policy. |
| Configure unlimited salary components. | The off-cycle payroll process enables additional payments like bonuses. |
| Simplify arrear calculations for various scenarios like overtime, attendance, and more. | Fulfills compliance requirements with automatic calculation and is ready to file forms, reports, and challans. |
Pricing
Starts at ₹4,999/month for up to 50 employees and includes other plans as well.
Best Suited for
factoHR software for payroll management is ideal for hotels, restaurants, and hospitality businesses of all sizes that need a scalable and compliance-focused payroll solution.
2. Keka
Keka payroll software is an efficient and user-friendly HR and payroll management software designed for non-finance roles. It enables HR teams to handle salary operations, revise, and plan compensation without deep financial expertise.
One limitation is delta processing, as payroll rollback is required if a cycle is locked, which can lead to calculation errors.
Key Features
- Unified HR, payroll, and time
- Leave and attendance reversal
- Tally and QuickBooks integration
- Payroll and cost analytics
- Consolidated expense reporting
- Rule-based salary components
- Advanced features on the web
Pricing
The pricing model for this HR payroll software starts at ₹9,999/month for up to 100 employees.
Best Suited for
Keka is most suitable for hotels and restaurants seeking a combined HR and payroll management tool.
3. ADP
ADP is a cloud-based payroll software for hospitality industry that integrates payroll with HR to streamline workforce management. It is widely used by hotels, restaurants, and food service businesses for handling high employee turnover, multi-location scheduling, benefits administration, and compliance.
While the platform offers scalability for both SMBs and large enterprises, some users find the interface complex, with limited customization and navigation challenges, especially for smaller businesses.
Key Features
- End-to-end payroll processing
- Integrated HR, payroll, compliance
- Multi-location workforce scheduling
- Recruiting and development tools through partners
- Basic HCM functionalities
Pricing
ADP’s pricing plans are available based on workforce size and features. Further details can be obtained from the company’s website.
Best Suited for
This software is best suited for hotels, restaurants, and large hospitality operations with complex payroll and compliance requirements.
4. APS Payroll
APS Payroll is cloud-based payroll management software that helps hotels, restaurants, and other hospitality businesses manage payroll, HR, and attendance in one place. It calculates wages and taxes, assists with compliance, and maintains accurate records to minimize errors.
Staff can use self-service tools to view payslips or request time off, reducing manual work for HR. With options for time tracking and integrations, it is helpful for both small and mid-sized businesses.
Key Features
- Automated payroll processing
- Compliance management
- Time tracking and scheduling
- Employee self-service dashboards
- Integrations with popular tools
- Mobile app for time tracking
Pricing
APS offers three pricing editions starting at $6, $10, and $14 per employee per month, depending on the features selected.
Best Suited for
APS is suitable for hotels, restaurants, and other hospitality businesses that require scalable HR and payroll software.
5. Paylocity
Paylocity is payroll and HR software for hotels, restaurants, and other hospitality businesses with busy, shift-based schedules. It includes tools for tracking attendance, scheduling staff, and processing payroll accurately and efficiently.
Employees can use the mobile app to view payslips, request time off, or clock in, making it easier to manage routine work. It also supports compliance with labor laws and provides reporting to help managers track costs effectively.
Key Features
- Automated payroll processing
- Mobile app for staff
- Geofencing and time clock kiosks
- Scheduling integrated with POS
- Peer recognition and surveys
- Benefits administration
- Compliance support
Pricing
Paylocity’s pricing model may vary depending on company size and the selected features.
Best Suited for
Paylocity is ideal for hospitality businesses with multiple shifts, high staff turnover, and multi-location operations.
6. QuickBooks Payroll
QuickBooks Payroll integrates with Intuit’s accounting software to provide hotels and restaurants with a simple payroll system. It automates tax calculations and filings, tracks employee hours, and manages different pay rates for staff.
The service also offers same-day direct deposits and mobile time tracking, making it easier for managers and employees to stay updated. With options for customizable reports and partner integrations, it suits small to mid-sized hospitality businesses that need payroll and HR in one place.
Key Features
- Full-service payroll
- Time tracking via mobile
- Same-day direct deposit
- Tax penalty protection
- HR tools and compliance
- Employee benefits access
Pricing
QuickBooks Payroll offers four pricing plans starting from $19 per month per user.
Best Suited for
It is best suited for small to mid-sized hospitality businesses (hotels, restaurants, cafes) that already use QuickBooks accounting software and want to streamline payroll while integrating HR, compliance, and benefits in one ecosystem.
7. Kronos (UKG Ready)
Kronos Payroll (now part of UKG) is a payroll and workforce system widely used in the hospitality industry. It helps businesses manage time, attendance, and payroll for staff working in different roles or shifts.
The platform also handles tax calculations and compliance requirements, which are essential for hotels and restaurants with larger teams. Managers can view real-time reports on labor costs and staffing, making it easier to schedule employees and manage expenses effectively.
Key Features
- Unlimited payroll runs
- Automated tax filings
- Employee self-service portal
- Benefits and deductions sync
- Journal entry reporting
- Time and attendance integration
Pricing
Kronos pricing plans can be obtained from the company’s website.
Best Suited for
Kronos is best suited for mid-to-large hospitality businesses that require advanced scheduling and compliance automation.
8. BambooHR
BambooHR is an intuitive and easy-to-use HR and payroll software used by many hospitality businesses, where staff often work in different shifts and need easy access to their records.
Using this software, employees can view payslips, update their information, and manage time off from their mobile devices. This cloud-based system handles payroll, tax filing, and benefits in one place, which reduces manual work for HR teams.
Key Features
- Automated timekeeping and attendance
- Comprehensive payroll processing
- Built-in tax management
- Employee self-service portal
- Advanced workforce scheduling
- Real-time labor analytics
- Seamless integration with systems
Pricing
BambooHR’s pricing plans can be obtained from the company’s website.
Best Suited for
It is ideal for mid-sized hospitality businesses seeking a user-friendly, all-in-one solution for payroll and HR management.
9. Zimyo
Zimyo is a payroll and HR platform designed for SMBs, including those in the hospitality sector, to deliver error-free, compliant, and efficient payroll processing with statutory requirements.
Beyond payroll, Zimyo streamlines expense management, making it particularly useful for hotels and restaurants where staff frequently incur expenses.
Key Features
- Manage complex payroll cycles
- Accurate salary processing
- Employee self-service portal
- Simplifies reimbursement workflows
- Mobile app for access
Pricing
Zimyo’s pricing starts at ₹80 per user/month for the Basic version. Details for advanced tiers can be obtained from the company’s website.
Best Suited for
Zimyo is best suited for small to medium-sized hospitality businesses seeking cost-effective solutions for payroll, compliance, and expense management.
10. Gusto
Gusto is a payroll and HR software that simplifies wage calculations and tip distribution for restaurants and hotels, making it easier to handle hourly and tipped workers. The system also handles tax filings, facilitates digital onboarding for both seasonal and permanent staff, and integrates with accounting and POS tools. Its easy setup helps hospitality businesses save time and avoid payroll mistakes.
Key Features
- Full-service payroll
- Tip tracking and wage compliance
- Time clock kiosk and self-service
- Digital onboarding
- HR compliance resources
- Integrations with accounting tools
Pricing
Gusto’s pricing Plans start at $49/month + $6 per employee. Details for advanced tiers can be obtained from the company’s website.
Best Suited for
Gusto is an ideal payroll software for restaurants, hotels, and SMBs in hospitality that need payroll with tip tracking and HR integration.
Key Payroll Challenges in the Hospitality Industry
High Employee Turnover
The hospitality industry experiences higher turnover annually compared to other sectors. Frequent employee turnover makes payroll management challenging, as it necessitates ongoing updates to employee data and pay cycles.
Shift-Based and Variable Hours
Time tracking, wage calculation, and scheduling become difficult without a dedicated hospitality rostering software, as employees often work in irregular shifts with fluctuating hours. Last-minute call-outs, no-shows, and fluctuations in customer demand exacerbate the employee shift scheduling challenges. This can lead to overtime costs, staffing gaps, and employee burnout.
Tip and Service Charge Management
Hospitality payroll management is challenging as it involves handling tips and service charges. Accurate tracking and fair distribution of tips needs careful attention and is a time-consuming task.
Multiple Roles or Locations
Hospitality staff often work in different roles or at multiple outlets, so payroll must accurately record hours by role and location, applying the correct pay rates, shift differentials, and local deductions. For businesses with multiple properties, maintaining consistent payroll compliance, ensuring timely data flow from each site, and coordinating across locations can make payroll management more complex.
Seasonal and Part-Time Workforce
Hospitality businesses face significant challenges in effectively managing their staffing requirements, as they experience dramatic fluctuations in staffing needs throughout the year. Payroll management for a constantly shifting workforce adds to the complexity, as it requires careful preparation and diligent monitoring of employee time and attendance.
Compliance with Labor Laws
Non-compliance with labor laws regarding minimum wages, overtime calculations, minor employment laws, and meal break provisions can result in penalties and legal consequences for the hospitality sector. These rules often vary by state and locality, which can complicate operations for businesses operating across multiple locations.
Manual Errors and Delays
Hospitality payroll is complex, involving calculations for tips, variable shifts, overtime, and multiple pay rates. Relying on manual systems or spreadsheets often leads to errors or delays, which can frustrate staff, reduce trust, and even create compliance risks.
Cloud-Based Payroll Software Solves the Payroll Challenges of the Hospitality Industry
Below are the key reasons for incorporating a cloud-based payroll solution in the hospitality industry, which enhance effectiveness, ensure compliance, and improve the experience for both operations and workers.
Time and Cost Efficiency
A cloud-based payroll software automates the payment process and is a cost-effective solution. It reduces the time and effort required to perform payroll tasks manually, enabling staff to focus on core tasks. Thus, a cloud-based payroll automation enhances overall effectiveness and productivity in the hospitality industry.
Accuracy and Compliance
Automated salary management ensures accurate payment of expenses and compliance with applicable statutory laws, including payroll taxes, thereby protecting the organization from legal issues and fines.
Employee Self-Service Portals
Accessing and managing pay statements, submitting leave requests, and updating personal details through self-service HR software reduces the burden on HR staff.
Integration with Other Systems
Staff rotation and daily changes to working hours make integration with attendance and leave management systems important in the hospitality sector.
Time and Resource Saving
Online payroll software automates tax calculations, employee compensation, and tax deductions, reducing the chances of errors. This reduces the manual burden on HR, saves time and cost associated with allocating resources, allowing them to focus on other essential tasks.
Conclusion
It’s necessary to incorporate payroll software in the complex and busy schedule of the hospitality sector. This technical solution improves efficiency and accuracy and liberates valuable time for core responsibilities such as delivering exceptional accommodation, food, and services to guests while prioritizing their well-being, safety, and overall satisfaction. Utilizing payroll software is a strategic imperative in commitment to excellence in hospitality.
With factoHR’s payroll software, hospitality businesses can automate payroll processes, simplify compliance, and ensure accurate salary disbursement, empowering your team to focus on creating outstanding guest experiences. Get started with factoHR today to transform the way you manage payroll.
FAQs
Why do Hotels and Restaurants Need Specialized Payroll Software?
Hotels and restaurants require payroll software for hospitality sector because payroll in this industry involves managing tips, variable shifts, seasonal workers, and multiple pay rates. Such software ensures compliance, accuracy, and timely payments, while reducing administrative burdens.
What Features Should I Look for in Payroll Software for Hotels or Restaurants?
Key features in hotel payroll software and restaurant payroll software include automated payroll processing, tip and overtime tracking, shift scheduling, compliance management, integration with POS or accounting tools, and employee self-service portals to reduce HR workload.
Does Payroll Software Help Manage Shift Workers in the Hospitality Industry?
Yes, specialized hospitality payroll software streamlines shift scheduling, manages variable hours, calculates overtime accurately, and integrates time-tracking tools to ensure employees are paid promptly and accurately.
Is It Possible to Integrate Payroll Software with Hotel Management Systems?
Many payroll management software solutions offer integrations with hotel and restaurant management systems, POS, and accounting platforms. This enables seamless data flow, reduced manual entry, and improved accuracy in workforce and financial reporting.
What’s the Difference between General Payroll Tools and Payroll Software for the Hospitality Industry?
General payroll tools focus on standard payroll functions. In contrast, payroll software for the hospitality industry caters to the specific needs of the sector, including tip distribution, multi-location management, rostering, and compliance with labour laws that affect shift-based staff.
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