How hospitality payroll usually works
A practical payroll services for hospitality engagement starts with a rapid health check: awards in scope, current software, roster and timesheet process, pay calendars, super and STP status, and any overdue items.
From there, we typically work in three layers:
- Immediate triage: fix misclassified roles, incorrect loadings, missed super, STP errors, or late payments.
- Process design: connect time & attendance to payroll, configure pay rules, set approval workflows and pay dates.
- Ongoing review: reconcile payroll to the ledger, check variances, update rates each award change and support busy periods.
Australian context to keep in view
- Fair Work awards most relevant: Hospitality Industry (General) Award [MA000009] and Restaurant Industry Award [MA000119]; confirm coverage by role and duties.
- Single Touch Payroll Phase 2 requires disaggregated earnings, tax treatment codes and accurate employee data sent each pay run.
- Super Guarantee is 12% (from 1 July 2025). Under-18s usually need 30+ hours per week to be eligible. Use stapled super where required.
- Penalty rates, casual loading, minimum engagements, breaks, split shifts and public holidays vary by award and state calendars.
- PAYG withholding and TFN declarations are handled via compliant payroll systems; keep records for at least 7 years.
- Payroll tax is state-based with thresholds and grouping rules—multi-venue groups should monitor monthly wages and states.
- Tips and service charges need consistent treatment; pooling and distributions can affect tax and super obligations.
What to compare before you commit
Scope
Confirm the payroll services for hospitality proposal includes award mapping, pay-rule setup, STP Phase 2, super processing, reconciliations, year-end finalisation and support during public holidays.
Software fit
Look for proven experience with Xero, MYOB, QuickBooks Online or Employment Hero Payroll (KeyPay), plus time & attendance tools like Deputy or Tanda and POS such as Lightspeed or Square.
Turnaround and communication
Ask how timesheets are approved, when cut-offs occur, SLAs for urgent fixes, and how payroll changes (new starters, rate changes) are handled during peak periods.
Commercial fit
Check fixed-fee vs time-based pricing, onboarding costs, training, and whether you want compliance-only or labour cost insights and roster-to-budget reporting.
Common hospitality payroll scenarios we fix
- Casuals paid the wrong loading or missing weekend/public holiday penalties.
- Incorrect timesheet approvals causing under/overpayments and roster blowouts.
- Unreconciled super or missed super for eligible casuals and juniors.
- STP Phase 2 errors and year-end finalisation mismatches to the general ledger.
- Multi-venue payroll consolidation and payroll tax threshold monitoring.
- Set up for new venues: onboarding checklists, TFN/stapled super, bank details and policy documentation.
Software we work with
We support the major Australian hospitality stacks:
- Payroll: Xero Payroll, MYOB, QuickBooks Online Payroll, Employment Hero Payroll (KeyPay).
- Time & Attendance: Deputy, Tanda, Square Shifts and similar solutions.
- POS/Operations: Lightspeed (including former Kounta/Vend), Square and other venue systems.
If you are mid-migration or using a different toolset, we document the workflow and design clean handovers so payroll remains stable through change.
Best next steps
Write down the exact outcome you want: compliant pay runs, better roster-to-wage reporting, faster onboarding, award cleanup, or full payroll outsourcing.
Collect recent pay slips, award classifications, current rates, timesheet examples, STP status and super fund details. This speeds triage and scoping.
Use the links across our hospitality segment to compare options: Hospitality Accountant, Bookkeeping for Hospitality, Tax Accountant for Hospitality, or view the broader Payroll Services hub.
Frequently asked questions
Which award applies to my venue?
Most venues fall under the Hospitality Industry (General) Award [MA000009] or Restaurant Industry Award [MA000119]. Some roles may sit under other awards depending on duties (e.g., Fast Food or Clerks). We check coverage and classifications before setting rates and rules.
How do penalty rates and casual loading work?
Casuals receive a loading on top of base rates. Penalties can apply for late nights, weekends, public holidays and overtime. Minimum engagements, span of hours, breaks and split shifts matter, so we configure software rules to apply these correctly and produce compliant pay slips.
What is STP Phase 2 and what do I have to report?
STP2 requires you to break down earnings (ordinary time, overtime, allowances, paid leave), use tax treatment codes and include more employee details. We ensure your payroll sends accurate STP data each pay run and that year-end finalisation aligns to the ledger.
Do I need to pay super to casuals?
Yes—most casuals are eligible. The Super Guarantee is 12% (from 1 July 2025). Under-18s generally only receive super if they work more than 30 hours in a week. We also manage stapled super and clearing house payments.
How should we treat tips and service charges?
Treatment depends on whether amounts are voluntary tips, mandatory service charges or pooled gratuities. This can change PAYG withholding and super outcomes. We document a consistent process aligned with ATO and Fair Work guidance.
What records should we keep?
Keep rosters, timesheets, employee contracts, right-to-work checks, TFN declarations, pay slips, leave records, super payments and award/EA rate updates for at least 7 years. We standardise this in your systems so audits are straightforward.