PIZZA HUT FRANCHISE PAYROLL · DINE-IN & DELCO

You run two Pizza Huts at once. WageTime pays both formats right.

Pizza Hut is the rare pizza brand that still seats guests: some of your units are Red Roof dining rooms with tip-credit servers; others are Delco units built on drivers in their own cars. WageTime runs both pay models in one payroll.

Built on infrastructure processing $35B+ in payroll & taxes · 4.3M+ W-2s & 1099s filed

For independently owned and operated Pizza Hut restaurants. WageTime is not affiliated with, endorsed by, or sponsored by Pizza Hut or its franchisor. “Pizza Hut” and “Red Roof” are trademarks of their owner, named here only to describe the businesses this page serves.

SOUND FAMILIAR?

One brand, two payrolls hiding inside it.

A Pizza Hut group is not one kind of restaurant. It is a dining room and a delivery hub running under the same sign, paid two different ways, and the ground keeps moving as the dine-in rooms convert to delivery. Each of these is either a manager’s second job or a wage claim waiting for a plaintiff.

TWO PIZZA HUTS

The dining room and the delivery unit pay people two different ways

A Red Roof restaurant pays table servers a tipped wage and runs a tip pool; a Delco unit pays delivery drivers who supply their own cars plus a carryout crew. Same brand, same owner, two pay models that share almost nothing. Run them on one generic payroll and either the servers’ tip credit or the drivers’ reimbursement is the thing that breaks.

THE CONVERSION

When a dining room becomes a delivery unit, the payroll changes too

Pizza Hut keeps moving its estate from dine-in to delivery, and the brand no longer offers new Red Roof locations. Convert a unit and the roster turns over: servers on a tip credit give way to drivers with mileage, the tip pool closes, reimbursement codes open, and it all has to happen on the same EIN without a missed or doubled paycheck.

THE SERVER’S TIP CREDIT

Tipped overtime on the cash wage is a lawsuit in slow motion

A dine-in server earns a cash wage plus tips, so overtime has to be figured on the full minimum wage, not the cash wage, and the tip credit only holds if the notice was given and the pool is legal. Seven states ban the tip credit outright. Get it wrong in the dining room and the back-pay clock runs for years.

THE DRIVER’S CAR

Reimburse too little and the wage slips under minimum

A Delco unit runs on drivers in their own cars, and federal law won’t let a floor-wage driver’s gas and wear cut into the minimum wage. A Pizza Hut franchisee that ran more than 300 restaurants paid $4.75 million to settle drivers who said a per-delivery rate left them short. The reimbursement line is a wage claim now, not a footnote.

THE 10.75%

Royalty and ad fund come out before payroll, and labor reads differently by format

A 6% royalty plus a 4.75% national advertising contribution is about 10.75 cents of every gross dollar, gone before anyone is paid. Labor is the line you steer, but it reads differently in a server-staffed dining room than a driver-staffed Delco unit, so you need it by unit and by format, this week, not buried in a month-end P&L across a dozen EINs.

The two formats, the conversion between them, and the EINs that pile up each get a product screen or a straight answer below.
01 · TWO FORMATS, ONE PAYROLL

How do I pay tipped dine-in servers and delivery drivers on the same payroll?

One payroll, both formats: WageTime runs Red Roof servers on tip codes and tipped overtime, Delco drivers on mileage and per-delivery codes, cooks on straight hourly, all coded by role on the same run.

  • Tip-credit servers and own-car drivers in the same run, coded by role.
  • Weighted-average overtime when one person works two roles in a week.
  • One payroll calendar and automatic filings across both formats.
app.wagetime.com/payroll/roster

Roster by Format · Riverside Group · Week of Mar 2-8

2 formats on one run
60People this run
2Formats, one run
1Cross-role week
UnitPeopleStatus
Oakhill #3921 · Dine-inRed Roof · tipped + kitchen18Ready
Midtown #4415 · DelcoDrivers + carryout14Ready
Lawson #4780 · DelcoDrivers + carryout12Ready
Bell Rd #3388 · Dine-inRed Roof · tipped + kitchen161 cross-role
One payroll calendar across both formatsfilings automatic

Replaces the dining-room payroll and the delivery payroll kept in two systems, reconciled by hand every cycle.

02 · THE DINING ROOM

Can WageTime run the Red Roof tip credit, the pool, and tipped overtime?

Yes: WageTime runs the Red Roof tip credit as configuration, not a clipboard. Tip pools are supported for the servers and the roles that share, and the whole thing stays right in states that set higher tipped floors or ban the credit outright.

  • Tip earning codes carry reported tips into the run.
  • Top-ups computed by state when tips don’t bridge to minimum.
  • Tipped overtime on the full minimum wage, not the cash wage.
  • At the federal floor, overtime is $10.88 minus the $5.12 tip credit: $5.76 cash.
app.wagetime.com/payroll/tips

Dine-In Tipped Payroll · Oakhill #3921 · Week of Mar 2-8

state tipped minimums loaded1 top-up computed
110.0Cash-wage hours
$1,225.25Reported tips
$19.40Top-up computed
$1,518.61Week gross
Maria L.$567.24
32.0 cash-wage hrs · tips $498.20no top-up
Devon K.$462.39
28.0 cash-wage hrs · tips $402.75no top-up
Tanya R.top-up $19.40$241.86
26.0 cash-wage hrs · tips $148.30tips fell short
Kyle P.pool share$247.12
24.0 cash-wage hrs · tips $176.00no top-up
Tipped overtime figured on the full minimum wagenot the cash wage

Replaces the tip spreadsheet with the formula nobody remembers writing, and the overtime rate figured on the cash wage.

03 · THE DELIVERY UNIT

Is each Delco driver reimbursed enough to stay above minimum after their own gas?

WageTime tests each driver’s wage-after-costs against the federal, state, and local floor the moment mileage is entered, so a thin reimbursement surfaces before the run, not in a demand letter.

  • Mileage and per-delivery pay as non-taxable codes on each driver’s check.
  • Tipped road hours and full-minimum in-store hours split, blended for overtime.
  • One franchisee agreed in 2024 to pay $4.75 million, settling over a thousand drivers.
  • Per-mile amounts stay your call; WageTime applies them the same at every unit.
app.wagetime.com/payroll/driver-reimbursement

Delco Driver Reimbursement · Midtown #4415 · Week of Mar 2-8

mileage code on the run1 driver at the floor
110Runs this week
614Miles logged
$280.00Reimbursed
Andre T.above floor$11.90
41 runs · 212mi · reimbursed $118.72wage after costs
Priya S.above floor$10.40
36 runs · 178 mi · reimbursed $99.68wage after costs
Marcus D.at floor · review$7.25
33 runs · 224 mi · reimbursed $61.60wage after costs
Nina F.in-store$12.25
carryout only · 0mi · no mileage paywage after costs
Every driver tested against the floor before the runper-driver records kept

Replaces the per-delivery figure guessed once and never revisited, and the settlement letter that reads it back to you.

04 · WHEN A UNIT CONVERTS

We’re turning a dine-in restaurant into a Delco. What happens to the payroll?

A conversion is a roster change on the same EIN, not a new company: WageTime closes the tip pool, swaps tip codes for mileage and per-delivery codes, and the unit never misses or doubles a paycheck.

  • Bulk termination with clean final checks for roles that end.
  • Rehire and self-onboarding with records retained for the new drivers.
  • Hours imported from each unit’s system; audit-ready change logs.
  • Tell us your systems on the demo and we’ll confirm the exact flow.
app.wagetime.com/people/conversion

Format Conversion · Lawson #4780 · Red Roof to Delco

records retainedpay model switched3 final checks
Servers off the tip pool, drivers onboarded, all on one EIN.
6Roles changed
8Drivers on codes
0Records re-keyed
ChangeCountStatus
Tip pool closedServers · codes removed6Done
Final checksServers leaving · off-cycle3Sent
Rehired to deliveryServers to drivers · records3Done
New drivers onboardedDrivers · self-onboarding5Ready
Reimbursement codes openedDrivers · mi + per-delivery8Live
Audit-ready change log on every switchone EIN

Replaces the conversion run kept on a side spreadsheet, the doubled paycheck, and the final check that waited for the next cycle.

05 · EVERY UNIT, ITS OWN EIN

I run a dozen units at different vintages. Is that a payroll for each one?

A single WageTime login runs the whole estate while each unit keeps its own EIN, filings, and deposits, and labor reads by unit and by format against the 10.75% draw, this week, not at month-end.

  • Each unit its own EIN and filings; one login, results per unit or combined.
  • Job costing carries hours and pay to each unit as the run happens.
  • Role-based access with segregated duties: a GM sees one unit, you see the network.
  • Variable-hour crews measured by the ACA look-back on payroll hours; 1095-Cs e-filed.
app.wagetime.com/group/units

Units · Q1 2026

4 units · 4 EINs · filings automatic1 labor % running hot
60People paid
4EINs filed
27.8%Blended labor
UnitLabor %Filings
Oakhill #3921 LLCDine-in · ••-•••3921 · 18 paid29.0%Filed, on plan
Midtown #4415 LLCDelco · ••-•••4415 · 14 paid25.0%Filed, on plan
Lawson #4780 LLCDelco · ••-•••4780 · 12 paid24.0%Filed, on plan
Bell Rd #3388 LLCDine-in · ••-•••3388 · 16 paid33.0%Filed · hot
Labor reads by unit and by format, this weekone login, reporting per unit or combined

Replaces a payroll account per unit, a year-end scramble per EIN, and the labor-percentage spreadsheet the bookkeeper rebuilds by hand.

PRICING

Simple payroll pricing. No surprises.

Full-service payroll is $10 a month per person paid that month, plus $50 a month per company, with unlimited runs. No long-term contracts, no per-run charges.

  • Full-service payroll, unlimited runs
  • Federal, state & local tax filing
  • Year-end W-2s & 1099s
  • Direct deposit, checks & pay cards
  • Contractor payments & filings
  • Off-cycle runs & bonuses, no extra fee
  • Employee paystubs & W-2 access
  • QuickBooks integration
$10/mo per person paid
+ $50/mo per company

Off-cycle runs and bonuses cost nothing extra. No long-term contracts; cancel anytime.

Example: 50 people paid × $10 + $50 company = $550 for the month

HR & hiring, onboarding, PTO, time tracking, benefits, and workers’ comp are optional add-ons, priced separately when you’re ready.

See a demo
THE INFRASTRUCTURE BEHIND WAGETIME
$35B+
in payroll & taxes paid
2.8M+
employees paid
4.3M+
W-2s & 1099s filed
100%
of tax filings automated

Pizza Hut franchisee payroll, asked directly

How do I pay tipped dine-in servers and delivery drivers on the same payroll?

In one run, coded by role. Red Roof servers get tip earning codes, a tip pool, and tipped overtime on the full minimum wage; Delco drivers get mileage and per-delivery pay codes with their wage tested against the floor; cooks get straight hourly. When one person works both roles in a week, overtime runs on the weighted-average rate. One payroll calendar, filings automatic, both formats.

Can servers be in a tip pool at a Pizza Hut dine-in restaurant?

Yes, where the law allows it. Under the federal rule, credit-taking pools stay among customarily tipped roles, and managers and supervisors can never keep tips; back-of-house can join only when no tip credit is taken and everyone gets full minimum in cash. WageTime treats your pool as configuration, so bring your split to the demo.

How much do I have to reimburse Delco delivery drivers for using their own cars?

Enough that a floor-wage driver’s pay doesn’t drop below the minimum after their own gas and wear. In 2024 a Pizza Hut franchisee that ran more than 300 restaurants agreed to pay $4.75 million to settle drivers who said a per-delivery rate left them short. WageTime carries the reimbursement as a pay code and tests the wage against the floor; how much to pay is your call with your advisor.

We’re converting a dine-in restaurant to delivery. What happens to payroll?

A conversion is a roster change on the same EIN, not a new company. The tip pool closes and tip codes come off, mileage and per-delivery codes come on, roles that end get a clean final check through bulk termination, and the drivers you keep or add come through rehire and self-onboarding with records retained. Audit-ready change logs record the switch.

I run a dozen units that opened at different times. Is that a separate payroll for each?

Each unit keeps its own EIN and files its own federal, state, and local returns, but you run them all from one login and pull results per unit or combined. Adding a unit means adding a company, not a vendor. Labor lands by unit and by format, so a dining room running hot against the 10.75% draw shows up this week, not at month-end.

What does payroll cost for a multi-unit Pizza Hut operation?

$50 per month per company plus $10 per month per person paid that month, no long-term contract. The four-unit group in the screens, 60 people paid, comes to $800: $200 in company bases plus $600 in per-person fees. Runs are unlimited, so off-cycle final checks and weekly pay cost nothing extra. Switching is full-service and paid, scoped on the demo.

Bring both formats.

Last week’s dine-in tips, the mileage you’re paying your drivers, and the unit you’re about to convert. Twenty minutes with a payroll specialist on a live demo group: you’ll watch a tipped server week compute, a driver’s reimbursement tested against the floor, and a unit switch pay models without a doubled check.

Book a 20-minute demo