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 theAlerts and Notificationsscreen for minimum wage requirement checks.
Set up the tipped pay item
- SelectSetup, thenPayroll Items.
- Create a new payroll item:
- In theMaintab, setCalculation typetoHourly rate.
- SetSpecial typetoTipped wages.
- In theAlternate minimum wagefield:
- Enter a default rate for all employees, or
- Leave at $0.00 to set individually later.
- Enter other information as needed, then selectEnter.
Apply the new pay item to an employee
- SelectSetup, thenEmployees.
- Select the employee, thenEdit.
- Mark the checkbox for the new tipped wage item.
- Select the ellipsis button.
- Enter theAlternate minimum wageamount.
- SelectOK, thenEnterto 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.