Set up payroll items for employees who earn tips
Accounting CS handles the calculations needed for employees who receive tipped wages. Typically, you'll need to set up a pay item for tipped wages and a pay item for reported tips. If you need to, you can set up multiple pay items for different types of reported tips.
Set up tipped wages
- SelectSetupthenPayroll Itemsfor your client.
- SelectAdd.
- SelectPayfrom theTypefield, then enter theDescriptionandReport Descriptionfor your employee's wage item.
- SelectHourly rateunderCalculation Type.
- SelectTipped wagesunderSpecial Type.
- Enter anAlternate minimum wageif you need to.
- Enter any additional information under the Main, Tax Exemptions, Special Timing, and Workers' Compensation tabs.
- SelectEnter.
Set up reported tips
- SelectSetupthenPayroll Itemsfor your client.
- SelectAdd.
- Enter theDescriptionandReport Descriptionto represent the amount of tips for your employee.
- SelectFixed AmountunderCalculation Type.
- SelectReported TipsunderSpecial Type.
- Verify or edit the settings underExclusions. By default, new reported tips pay items are excluded from gross pay presentation and net pay. When a pay item is excluded from net pay, the amount doesn't post to the general ledger.
- Enter any additional information under the Main, Tax Exemptions, Special Timing, and Workers' Compensation tabs.
- SelectEnter.
note
You can assign multiple pay items that use the
Reported Tips
special type to an employee for recording the different types of tips an employee may receive (for example, cash tips or credit card tips). When verifying an employee meets the minimum wage requirements, Accounting CS combines the amounts from all Reported Tips
items used on the check during this verification.