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Set up employees and payroll items

Set up alternate minimum wage rates for tipped employees

In certain situations, you may need to specify alternate minimum wage rates for tipped employees. Examples include:
  • Some locations allow lower rates for employers giving health or childcare benefits.
  • Multi-tier minimum wage rules based on employer size, location, or job type.
  • Reduced rates for specific job classifications.
Follow these steps to set up alternate minimum wage rates for tipped employees. This setup helps you comply with various minimum wage laws while managing tipped employees effectively.
note
  • Always check local laws for specific minimum wage rules.
  • Update existing employees if you change an active pay item.
  • Review the
    Alerts and Notifications
     screen for minimum wage requirement checks.

Set up the tipped pay item

  1. Select
    Setup
    , then
    Payroll Items
    .
  2. Create a new payroll item:
    1. In the
      Main
       tab, set
      Calculation type
       to
      Hourly rate
      .
    2. Set
      Special type
       to
      Tipped wages
      .
  3. In the
    Alternate minimum wage
     field:
    1. Enter a default rate for all employees, or
    2. Leave at $0.00 to set individually later.
  4. Enter other information as needed, then select
    Enter
    .

Apply the new pay item to an employee

  1. Select
    Setup
    , then
    Employees
    .
  2. Select the employee, then
    Edit
    .
  3. Mark the checkbox for the new tipped wage item.
  4. Select the ellipsis (...) button.
  5. Enter the
    Alternate minimum wage
     amount.
  6. Select
    OK
    , then
    Enter
     to save.

Use the new rate

When you use this pay item on a paycheck, the system will check if the pay meets the alternate minimum wage you set.

This article applies to:

  • Product: Accounting CS,Accounting CS Client Access
  • Subject: Payroll checks,Setup