How it runs for franchise owners
You approve every run before it is submitted, and the payroll tax deposits are made by the provider from your account, never by us.
What is payroll processing outsourcing?
Payroll processing outsourcing means a remote team prepares each pay run inside your payroll software: reconciling hours, entering changes, checking deductions and producing the run for the employer to approve. The employer keeps the payroll account, the bank authority and the legal responsibility. The provider posts the payroll journal and reconciles it, so payroll and the books agree.
What we handle for franchise owners
- Payroll runs prepared from approved timesheets and submitted after your sign-off
- Tips, tip credits and overtime checked against state and federal rules
- Payroll journals posted by unit so labor cost per store is accurate
- Multi-state registrations and rates tracked for units across state lines
- Payroll liabilities reconciled monthly to provider filings and bank debits
The KPI that matters here
Payroll journal posted by unit within 1 business day of each pay run.
Franchises compliance notes
Franchisor royalty reporting
Your agreement defines gross sales for royalty purposes, and the definition often excludes sales tax and refunds but includes gift-card redemptions and delivery orders. We keep the ledger's sales accounts aligned to that definition so the weekly upload and the monthly royalty statement reconcile without manual adjustments. Any dispute is documented with POS exports the franchisor can trace.
Marketing-fund and local advertising reporting
Brand marketing-fund contributions are a separate percentage from royalties and many agreements also require a minimum local advertising spend, often 1 to 2% of gross sales, with proof on request. We track both in their own accounts and keep invoices attached so the annual attestation is a report, not a search.
Audit rights and record retention
Franchise agreements commonly allow the franchisor to inspect books and POS data, and to charge the audit cost to you if under-reporting exceeds a stated threshold, frequently 2 to 3%. Every sales entry carries its source document in LedgerDesk so an inspection can be answered from the file.
Multi-state sales tax and payroll
Units in different states carry different sales-tax rates, filing frequencies and payroll registrations. We track liabilities by unit and state, prepare the workings, and your registered preparer files; we do not file on your behalf.
Franchises software we work in
More for franchise owners
Other services for franchises
Frequently asked questions
Do you run payroll for franchisees or just support it?
We support it. Your payroll provider calculates taxes and files returns; we prepare the run from approved hours, check tips and overtime, submit it after you approve, post the journal by unit and reconcile the liabilities. Tax deposits leave your account through the provider. This keeps you in control of every payment while removing the data entry.
How do you handle tips and tip credits in franchise payroll?
Declared tips from the POS are imported into each run, and where your state allows a tip credit against minimum wage we check that hourly pay plus tips meets the required floor for each employee. Tip pools and service charges are recorded separately, because service charges are wages and not tips for tax purposes. Your provider's filings reflect the same figures.
Can you allocate a manager's cost across two units?
Yes, a shared manager or roving trainer is allocated by an agreed split, such as hours or sales, and the journal posts the share to each unit. The allocation is documented so franchisor reporting and unit P&Ls are consistent from month to month. Changes to the split are made only on your instruction.
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