FirstHR

Retail Payroll Software: 12 Platforms Compared

Retail payroll software compared on real cost at 5, 15, and 50 employees, POS integration, multi-location pricing, and scheduling for hourly store teams.

Nick Anisimov

Nick Anisimov

FirstHR Founder

Payroll
18 min

Retail Payroll Software Compared

What each platform costs at 5, 15, and 50 store employees, which ones read hours straight from your register, and the pricing model that punishes a second location

Payroll software for a retail store is not the same purchase as payroll software for an office. An office pays a stable set of salaried people twice a month. A store pays a shifting mix of part-time and full-time staff whose hours change weekly, some of whom hold two different rates, several of whom were hired six weeks ago and will be gone in four months.

That difference is what separates the products below. The pricing pages all look similar, roughly $35 to $50 base plus $5 to $7 per employee, and at first glance the decision looks like a coin flip. It is not. What actually decides it is whether hours arrive from the register automatically or get typed in by hand, whether a second store doubles the subscription or costs nothing extra, and whether the platform handles two pay rates for the same person without an upgrade.

This comparison covers 12 platforms across those criteria, prices each at 5, 15, and 50 employees, and is honest about which ones a 12-person store should ignore entirely.

TL;DR
For a store already on Square, Square Payroll at $35 plus $6 is the obvious answer and hours arrive without configuration. Homebase is the pick when scheduling is the real problem, but it prices per location so a second store roughly doubles the base. Gusto and OnPay both sit at $49 plus $6 with better HR depth, and OnPay wins the moment a second state appears. Patriot is cheapest at $37 plus $5 for a single store in one state. Paycom and Rippling are built for chains, not for a shop with 14 people.

What makes retail payroll different

Six characteristics change the requirements, and every one of them is a place where generic payroll advice stops applying.

CharacteristicWhat it demands from the softwareWhere products fall short
Hours vary every weekTime data flowing into payroll without manual entryPlatforms with no built-in time clock require a second subscription
Mixed part-time and full-timeCorrect overtime on actual hours, accurate PTO accrualEntry tiers sometimes cap PTO policy complexity
Two rates for one personMultiple pay rates per employee with weighted-average overtimeOften gated behind a higher tier or an add-on
Seasonal hiring spikesFast onboarding of many people, then pausing without penaltyPer-employee billing on headcount, not on people actually paid
Tips and commissionTip reporting, pooling, and the FICA tip creditGeneral platforms accept tips as input but do not pool them
Multiple locationsOne payroll run across stores, states, and local minimum wagesPer-location pricing and per-state surcharges compound quickly

The turnover point deserves its own paragraph because it drives the rest. Retail runs one of the highest separation rates of any US industry, and the practical consequence is that a store with 15 positions may hire 10 people in a year. Every one of those hires needs tax forms, an I-9, a pay rate in the system, and a first shift they are actually prepared for. Payroll software handles exactly one part of that: paying them correctly once everything else is in place. Our guides to the cost of employee turnover and labor cost cover the numbers behind it.

Two pay rates is where FLSA claims start
When someone works 25 hours on the floor at one rate and 20 hours as a shift lead at another, overtime is owed on a weighted average of the two, not on whichever rate is lower. Platforms differ on whether they support multiple rates per employee at the entry tier and whether they compute the blended rate automatically. Confirm both before buying, because the manual workaround is a spreadsheet and the failure mode is back wages. Our guide to overtime rules covers the calculation.
Still Using Spreadsheets for Onboarding?
Automate documents, training assignments, task management, and track onboarding progress in real time.
See How It Works

12 retail payroll platforms compared

The POS Native column below is the one worth reading first. It separates products that read hours from your register automatically from products that expect a file or an integration you configure and maintain.

ProductBest ForStarting PricePricing ModelTax FilingSchedulingPOS NativeOnboarding ToolsTrial
Square PayrollStores already on Square POS$35 + $6/eeFlat + PEPMFree trial
HomebaseScheduling first, payroll added$39 + $6/eePer location + PEPM14 days
GustoDepth of HR alongside payroll$49 + $6/eeBase + PEPMUntil 1st run
OnPayMulti-state without surcharges$49 + $6/eeBase + PEPM1 month
PatriotLowest cost, single location$37 + $5/eeBase + PEPM30 days
QuickBooksBooks already in QuickBooks$50 + $6.50/eeBase + PEPM30 days
FingercheckBiometric clock and geofencing$79 + $10/eeBase + PEPMVaries
Toast PayrollFood service on Toast POS~$90 + $9/eeBundle + PEPMDemo
RipplingGrowing past one system$35 + $8/ee+Modular PEPMDemo
ADP RUNCompliance depth, multi-location~$79 + $4/eeQuote3 months
Paychex FlexA named person to callQuoteQuoteVaries
PaycomAbove 100 employeesQuoteQuoteDemo
Pricing verified as of July 2026 from vendor pricing pages. PEPM = per employee per month. ADP RUN, Paychex Flex, Paycom, and Toast do not publish complete list pricing; those figures are third-party estimates. POS Native means hours and sales flow in without a separate integration purchase. Onboarding Tools means document collection and e-signature beyond basic tax forms.

Square Payroll

At $35 per month plus $6 per person paid, this is the cheapest full-service option on the list, and for a store already running Square point of sale the argument is close to unanswerable. Hours, tips, and labor cost flow from the register into payroll with nothing to configure. Tax filing across federal and state jurisdictions is included, digital W-2 and 1099 delivery is free, and paper copies cost $3 per form annually. Contractor-only payroll drops the base fee entirely and charges $6 per contractor paid.

The catch is that most of the value is locked to the Square ecosystem. A store running Clover or Lightspeed gets a competent but unremarkable payroll product with thin HR functionality and basic reporting.

Pros
Lowest base price among full-service options at $35 per month
Hours, tips, and labor cost pull natively from Square point of sale
Contractor-only plan carries no monthly base fee
Account can be paused between seasons without a cancellation fee
Cons
Value drops sharply for stores not already on Square
Thin HR and benefits functionality compared to Gusto or OnPay
Paper W-2 and 1099 mailing costs $3 per form
Reporting is basic and support is largely self-service

Homebase

Homebase approaches the problem from the scheduling side rather than the payroll side, which for many store operators is the correct order. Drag-and-drop schedules, a time clock, team messaging, and shift trades come first, and payroll attaches as an add-on at $39 per month plus $6 per paid employee on top of the location subscription. Paid tiers run roughly $25 to $100 per month per location, and the higher tier adds onboarding with e-signatures and document storage.

The pricing model is the thing to understand before signing. Homebase charges per location with unlimited employees, which is excellent value for one busy store and expensive for three small ones. A second location is a second full subscription regardless of whether four people work there.

Pros
Best scheduling and shift management in this comparison
Unlimited employees per location: strong value for one high-headcount store
Free tier covers basic scheduling and time tracking for a small single store
Higher tiers add onboarding with e-signatures and document storage
Cons
Per-location pricing means each additional store is a full extra subscription
Payroll is an add-on priced separately from the location subscription
Tip management and task management are further paid add-ons
HR depth is thinner than dedicated payroll and HR platforms

Gusto

The Simple plan runs $49 per month plus $6 per employee after a March 2026 base price increase, with automatic tax filing, year-end processing included, and the best onboarding and benefits tooling among the payroll-first providers. For a store owner who wants offer letters, document storage, and health insurance administration in the same system that runs payroll, Gusto covers more ground than anything else at this price.

Two retail-specific limitations. Simple is single-state only, so one store across a state line forces Plus at $80 plus $12 per employee. And time tracking sits behind Plus or a paid add-on, which means an hourly store on Simple still needs a separate clock.

Pros
Strongest HR and onboarding tooling among payroll-first providers
Automatic federal, state, and local filing with year-end forms included
Health insurance administration built in across most states
Published pricing, month-to-month billing, no contract
Cons
Simple plan is single-state only: a second state forces the Plus tier
Time tracking requires Plus or a paid add-on, which hourly stores need
Base price rose from $40 to $49 in March 2026
No native scheduling: shift management needs a separate tool

OnPay

One plan at $49 per month plus $6 per employee with every feature included and no tier to climb. Tax filing covers all 50 states with no multi-state surcharge, which matters for any operator with stores on both sides of a state line. Year-end W-2 and 1099 filing is included and the first month is free without a credit card.

The gap for retail specifically is time tracking, which OnPay does not build in and expects to arrive from an integration. For a store with hourly staff, budget for a clock alongside it.

Pros
Multi-state filing at no surcharge, unusual at this price point
Single plan with no features gated behind a higher tier
Year-end W-2 and 1099 filing included in the base price
First month free with no credit card required
Cons
No built-in time tracking: hourly stores need a separate clock
No native scheduling or shift management
Benefits administration routes through OnPay's own licensed broker
Interface is functional rather than polished

Patriot Software

Full Service at $37 per month plus $5 per employee is the cheapest legitimate full-service payroll available, covering federal, state, and local filing plus new hire reporting. The Basic tier at $17 plus $4 calculates tax but leaves depositing and filing to the owner, which for a store without a bookkeeper is a poor trade against IRS deposit penalties.

Additional states cost $12 per month each, and there is no scheduling and no built-in time clock beyond a paid add-on. For a single store in one state watching every dollar, nothing beats it on price.

Pros
Lowest published base price in full-service payroll at $37 per month
Unlimited payroll runs with no per-run fees and free direct deposit
Federal, state, and local filing plus new hire reporting included
30-day free trial and a discounted first three months
Cons
$12 per month for each additional state filed
Time tracking and HR are separate paid add-ons
No scheduling or shift management at any tier
Basic tier leaves all depositing and filing with the employer

QuickBooks Payroll

Core runs $50 per month plus $6.50 per employee with full-service tax filing on every tier, following a per-employee price increase across the Workforce plans on July 1, 2026. The reason to pick it has always been the same: if the store books already live in QuickBooks Online, payroll lands in the general ledger with no export step. Time tracking arrives on Premium rather than Core, which pushes many hourly retailers up a tier.

Pros
Native general ledger sync with QuickBooks Online accounting
Full-service tax filing included on every tier including Core
Same-day direct deposit available on higher tiers
Published pricing with no sales call required
Cons
Per-employee pricing increased on July 1, 2026
Time tracking requires Premium, raising the real entry price
Core and Premium may charge per additional state filed
Weak value if the store does not use QuickBooks accounting
Companies Using FirstHR Onboard 3x Faster
Join hundreds of small businesses who transformed their new hire experience.
See It in Action

Fingercheck

Built for hourly and deskless teams rather than adapted to them. The 360 tier at roughly $79 per month plus $10 per employee bundles payroll, a biometric time clock with geofencing, scheduling, applicant tracking, and an onboarding wizard. Multi-state payroll runs in a single pass and tip pooling is handled natively.

It is meaningfully more expensive per employee than the general platforms, which is the honest trade: you are buying a time and attendance product with payroll attached rather than the reverse.

Pros
Biometric clock-in and geofencing included rather than sold separately
Scheduling, applicant tracking, and onboarding in the same platform
Multi-state payroll processed in a single run
On-demand pay available, which helps with hourly retention
Cons
Highest per-employee cost among SMB options at $10 on the 360 tier
Overbuilt for a small store that does not need biometric clocking
Pricing climbs steeply on the 360 Plus tier
Smaller integration ecosystem than the major platforms

Toast Payroll

The Square equivalent for food service: payroll wired directly into Toast point of sale, with automatic tip distribution and hours flowing from the register. Pricing is quoted as a bundle with the POS rather than published as a standalone number. For a general merchandise or apparel retailer this is the wrong category of product, and it is included here only because it appears in most retail payroll listicles despite being a restaurant tool.

Pros
Deepest tip handling and distribution in this comparison
Hours and sales flow natively from Toast point of sale
Purpose-built for high-turnover food service teams
Onboarding and time tracking included in the platform
Cons
Requires Toast point of sale: no value without it
Built for food service rather than general retail
Pricing is bundled and not published as a standalone figure
Switching costs are high once the POS and payroll are entangled

Rippling

A unified employee record spanning HR, payroll, and IT, starting at $35 per month plus $8 per employee for the core platform with payroll as a separate module. Real configurations land well above the headline figure. Rippling handles multi-jurisdiction tax and connects to Toast, Square, and Lightspeed, and it genuinely scales from a small chain into the mid-market without replatforming.

For a single store with 14 people it is overbuilt and overpriced. The point at which it starts making sense is somewhere north of three locations with real administrative complexity.

Pros
Single employee record spanning HR, payroll, and device provisioning
Strong automation: hiring triggers downstream setup automatically
Handles multi-state and multi-jurisdiction tax within one workflow
Scales from small chain to mid-market without changing systems
Cons
Modular pricing means the headline figure is not what anyone pays
Payroll module priced separately and not published standalone
Implementation fees are common and quoted per contract
Substantially overbuilt for a single-location store

ADP RUN

The deepest tax compliance operation in the category, which matters for an operator with stores across several states and local tax jurisdictions. Third-party estimates put the Essential tier near $79 per month plus $4 per employee, but ADP does not publish rates and most buyers report paying more once add-ons land. Contracts typically run annually with automatic renewal.

Pros
Best-in-class tax compliance across federal, state, and local jurisdictions
Multi-location and multi-state registration handled as routine work
Three-month free trial promotions are common for new customers
Deep add-on catalog for benefits and HR as a chain grows
Cons
No published pricing: every quote requires a sales conversation
Annual contract with automatic renewal and a cancellation notice window
Add-on modules push effective cost well above the headline figure
Post-implementation support quality is a recurring complaint in reviews

Paychex Flex

A service relationship rather than a software subscription, with a named contact at higher tiers. Pricing is quote-only. The case for it in retail is specific: when a wage-and-hour question or a tax notice arrives and nobody in the store knows what it means, having someone to call has real value. Customers regularly report quarterly administrative charges not discussed upfront.

Pros
Dedicated service representatives available at higher tiers
Full tax filing and compliance support across all jurisdictions
Handles agency notice response as part of the service model
Broad benefits and retirement offerings as a chain grows
Cons
Quote-only pricing with no published rates at any tier
Quarterly fees are reported by customers and not always disclosed upfront
Dedicated support requires a higher-priced tier
Contract terms less flexible than month-to-month providers

Paycom

A full human capital management suite with a retail vertical, sold on quote-based per-employee pricing that generally starts making sense above roughly 100 employees. Everything an enterprise retailer needs is present, including learning management, performance, and scheduling in one system. For the 5 to 50 employee stores this comparison is written for, it is the wrong size of product and the sales process will make that clear.

Pros
Complete HCM suite: payroll, learning, performance, and scheduling together
Employee self-service is unusually thorough
Dedicated retail vertical with multi-location support
Single database eliminates cross-system reconciliation
Cons
Quote-only pricing that is high for small stores
Implementation is a multi-week project rather than a signup
Substantially more system than a 5 to 50 employee store needs
No self-serve evaluation path

What retail payroll actually costs at 5, 15, and 50 employees

Vendor pages quote a base fee and a per-employee fee separately, which makes comparison harder than it should be. The table below does the arithmetic at three store sizes and adds the column that reorders everything: what happens at a second location or a second state.

Product5 employees15 employees50 employees2nd Location or StateNotes
Patriot Full Service$62$112$287$12/mo per extra stateNo scheduling included
Square Payroll$65$125$335IncludedNeeds Square POS to shine
Homebase + payroll$94$154$364Per location, not stateSecond store roughly doubles base
OnPay$79$139$349IncludedNo built-in time clock
Gusto Simple$79$139$349Forces Plus tierPlus at 15 staff is $260
QuickBooks Core$83$148$375Fee per extra stateTime tracking on Premium
Fingercheck 360$129$229$579IncludedBiometric clock included
Monthly cost at published standard rates, verified July 2026, assuming one location and one state unless noted. Homebase figures pair the Plus subscription with the payroll add-on at $39 per month plus $6 per paid employee. Excludes promotional discounts, benefits premiums, workers compensation, paper W-2 mailing, and off-cycle run fees where billed separately.

The pattern worth naming is that the spread narrows as headcount grows. At 5 employees the cheapest and most expensive SMB options differ by $67 per month, a real gap for a small shop. At 50 employees the general platforms cluster between $287 and $375, a difference of under $90 across very different products. Which means at 50 people the decision should be made on capability rather than price, and at 5 people price is a legitimate deciding factor. For a wider view across the whole payroll category rather than retail specifically, see the payroll software for small business comparison.

Price the seasonal peak, not the average
A store that runs 12 people most of the year and 26 through the holidays should model both numbers. Per-employee platforms bill on people actually paid in a month, so the December bill rises and falls with headcount. Per-location platforms like Homebase charge the same either way, which makes them cheaper at the peak and more expensive in February. Neither model is better in the abstract: it depends on how spiky the year is.

POS integration and where it actually breaks

Every vendor lists point of sale integrations. The listing tells you almost nothing, because three different things travel under that word.

Integration typeWhat happens each pay periodProducts
NativeHours and tips are already in payroll: nothing to doSquare with Square POS, Toast with Toast POS
Automatic syncA connector pushes hours on a schedule: verify and approveHomebase, Gusto, OnPay, Rippling with major POS systems
File exportDownload from the POS, format, upload to payrollVarious combinations, especially older or niche POS systems

The difference between the second and third rows is 20 to 40 minutes of work every pay period plus a recurring opportunity for transcription errors. Before buying, ask the vendor specifically whether your point of sale syncs automatically or exports a file, because both answers get marketed as an integration. Clover and Lightspeed in particular do not sell payroll of their own, so store operators on those systems are always pairing a POS with a third-party payroll product and the quality of that pairing varies by combination.

Tips are a separate question from hours
A POS integration that syncs hours does not necessarily sync tips, and syncing reported tips does not mean the platform distributes pooled tips. Square and Toast do both because they capture tips at the register. Homebase sells tip management separately. General payroll platforms accept tips as an input and withhold correctly on them without pooling. If the store pools tips, ask about the mechanics rather than trusting a checkmark. Our guides to tipped minimum wage and the FICA tip credit cover the tax side.

The multi-location pricing trap

This is the single most expensive misjudgment in retail payroll purchasing, and it happens because the pricing model that is cheapest at one store is often the most expensive at three.

Pricing modelCost of a second storeProductsBest when
Per employeeNothing extra: fee follows headcountGusto, OnPay, Square, Patriot, QuickBooksSeveral small stores
Per locationA second full subscription regardless of sizeHomebaseOne store with many staff
Per stateA surcharge on top of either modelPatriot at $12, QuickBooks on some tiersEverything in one state
Tier upgradeForces a higher plan entirelyGusto Simple to PlusSingle state, no expansion planned

Work an example. Three small stores with six people each, all in one state. On a per-employee platform that is 18 employees and one subscription. On Homebase it is three location subscriptions plus the payroll add-on, and the scheduling value that justified the choice at one store is now being paid for three times. Reverse it: one store with 40 hourly staff on a per-location plan carries unlimited employees for a flat fee, which the per-employee platforms cannot match.

The state question compounds separately. A second location across a state line means a new registration with that state's revenue and unemployment agencies before anyone can be paid there, a different minimum wage, and possibly local taxes. Our multi-state payroll guide covers the mechanics and payroll taxes by state covers what changes where.

Fair workweek probably does not apply to you, and it is worth knowing why
Eleven US jurisdictions enforce predictive scheduling rules as of 2026: Oregon statewide, plus San Francisco, Emeryville, Berkeley, Los Angeles City, unincorporated Los Angeles County, Chicago, Evanston, Seattle, Philadelphia, and New York City. Coverage thresholds are usually counted globally and set high. Oregon covers retail at 500 or more employees worldwide and the Los Angeles County ordinance, effective July 1, 2025, covers retail at 300 or more. Berkeley is the outlier at 10. Most independent stores fall outside these laws entirely, which means scheduling compliance features marketed as essential are frequently irrelevant to a 15-person shop. Verify the specific ordinance for each location before paying for the capability.

Honest verdict by store size

One store, under 10 employees, one state
Patriot Full Service at $37 plus $5 per employee if the budget is tight and you already have a way to track hours. Square Payroll at $35 plus $6 if the store runs Square point of sale, which makes it both cheaper in practice and less work every pay period. Homebase free tier plus its payroll add-on is worth considering if scheduling is currently the bigger headache than payroll. Skip Rippling, Paycom, ADP, and Paychex entirely at this size.
One store, 10 to 30 employees, hourly heavy
This is where scheduling and time tracking stop being optional. Homebase is the strongest single answer because per-location pricing with unlimited employees is genuinely cheap at this headcount and the scheduling is the best here. Square Payroll if you are on Square POS. Fingercheck if you need biometric clock-in to stop buddy punching. Gusto or OnPay if HR depth and benefits matter more than scheduling, budgeting separately for a time clock.
Two or three stores, same state
Switch the analysis to per-employee pricing. OnPay or Gusto at $49 plus $6 covers all locations under one subscription, where Homebase would charge three times. Square Payroll works across locations if all of them run Square. If administrative complexity is genuinely growing, ADP RUN becomes worth a quote, though expect the sales process rather than a signup.
Multiple stores across state lines
OnPay is the clearest answer at this shape because multi-state filing carries no surcharge and there is no tier to climb. Gusto requires the Plus tier at $80 plus $12 per employee, which is defensible if you want the HR tooling. Patriot adds $12 per state and stops being the cheap option around the third state. ADP RUN earns its price here if local tax jurisdictions are involved.
Above roughly 75 employees or four locations
Rippling and Paycom become reasonable rather than absurd, and the calculus shifts from price to administrative capacity. At this size a dedicated person is handling HR at least part time, which is the assumption those platforms are built on. Get quotes from both, and get one from ADP for comparison, but expect implementation to be a project measured in weeks.

Before you choose

FirstHR does not run payroll, calculate wages, or file payroll taxes. Every platform above does something we do not, and if paying your staff correctly is the problem in front of you, one of them is the answer.

What we handle is the part that happens before the first paycheck. A store that hires 10 people a year and doubles headcount for the holidays is collecting W-4s and I-9s under time pressure, chasing signatures, and hoping each new hire is trained enough to work a shift alone. That is onboarding, and payroll software touches almost none of it. FirstHR covers e-signatures, document collection, training modules with completion tracking, task workflows, and employee records for US teams of 5 to 50 people at a flat $98 to $198 per month, alongside whichever payroll platform you pick.

Key Takeaways
Point of sale integration is the single biggest practical difference between these products. Square with Square POS and Toast with Toast POS are native, meaning hours and tips are already in payroll. Everything else is either a scheduled sync you verify or a file you export and upload, and vendors market all three the same way.
The pricing model matters more than the headline rate once a second location appears. Per-employee platforms charge nothing extra for a second store, per-location platforms like Homebase charge a full second subscription, and per-state surcharges from Patriot and QuickBooks stack on top of either.
At 5 employees the cheapest and most expensive SMB options differ by roughly $67 per month, which is worth optimizing. At 50 employees they cluster within $90 of each other, at which point the decision should be made on capability rather than price.
Multiple pay rates for one person is a genuine FLSA exposure in retail, since overtime is owed on a weighted average of hours worked at each rate. Confirm the platform supports multiple rates per employee at the tier you are buying, not just at the top tier.
Fair workweek laws exist in 11 US jurisdictions but coverage thresholds are usually in the hundreds of employees counted globally, so most independent stores are exempt. Do not pay for predictive scheduling compliance features without confirming the local ordinance actually covers a business your size.

Frequently Asked Questions

What is retail payroll software?

Payroll built for an hourly, shift-based workforce rather than a salaried one. It reads clocked hours instead of assuming a fixed salary, handles a mix of part-time and full-time staff with different rates, calculates overtime on actual hours under FLSA rules, and often handles tips and commission. Most options are general small business payroll platforms with the retail-relevant pieces turned on.

How much does payroll software cost for a retail store?

At 5 employees, published July 2026 rates run roughly $62 for Patriot Full Service, $65 for Square Payroll, $79 for OnPay or Gusto Simple, and $83 for QuickBooks Core. At 50 employees the same plans land between $287 and $375. Platforms bundling scheduling and time tracking cost more at every headcount because they replace a second subscription.

Which payroll software integrates with Square, Clover, or Lightspeed?

Square Payroll is native to Square and Toast Payroll is native to Toast, meaning hours and tips arrive without configuration. Clover and Lightspeed do not sell payroll of their own, so stores on those systems pair a third-party payroll product with an integration. Confirm whether a given pairing syncs automatically or only exports a file you upload manually.

How does multi-location retail change payroll pricing?

Per-employee platforms including Gusto, OnPay, Square, and Patriot charge nothing extra for a second store. Homebase prices per location, so each store is a separate subscription. If the second location is in another state, Patriot adds $12 per month, QuickBooks may charge per state, and Gusto Simple requires an upgrade to Plus.

Does retail payroll software handle tips?

Square and Toast handle tips natively including pooled distribution, since they capture them at the register. Homebase sells tip management as a paid add-on. Gusto, OnPay, and Patriot accept reported tips and withhold correctly on them but do not pool or distribute tips. Confirm the mechanics if the store runs a tip pool.

What are fair workweek laws and do they apply to a small store?

They require covered employers to post schedules roughly 14 days ahead and pay a premium for changes inside that window. Eleven US jurisdictions enforce them as of 2026, led by Oregon statewide. Coverage thresholds are usually counted globally and set in the hundreds of employees, so most independent stores are exempt. Berkeley at 10 employees is the notable exception.

Do retail employees with different rates need special payroll software?

Not special software, but a platform supporting multiple pay rates per employee, which some gate behind a higher tier. Overtime must be calculated on a weighted average of hours worked at each rate. See our guide to salary versus hourly pay for how the classifications differ.

What payroll work stays with the store owner after setup?

Worker classification, registering in each new state, keeping the unemployment rate current, reviewing quarterly returns, and collecting a complete W-4 and I-9 from every hire before their first shift. Seasonal hiring is where that last one breaks down: payroll software will pay someone whose new hire paperwork was never finished.

Ready to transform your onboarding?

7-day free trial No credit card required
Start Your Free Trial