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

  1. Select
    Setup
    then
    Payroll Items
    for your client.
  2. Select
    Add
    .
  3. Select
    Pay
    from the
    Type
    field, then enter the
    Description
    and
    Report Description
    for your employee's wage item.
  4. Select
    Hourly rate
    under
    Calculation Type
    .
  5. Select
    Tipped wages
    under
    Special Type
    .
  6. Enter an
    Alternate minimum wage
    if you need to.
  7. Enter any additional information under the Main, Tax Exemptions, Special Timing, and Workers' Compensation tabs.
  8. Select
    Enter
    .

Set up reported tips

  1. Select
    Setup
    then
    Payroll Items
    for your client.
  2. Select
    Add
    .
  3. Enter the
    Description
    and
    Report Description
    to represent the amount of tips for your employee.
  4. Select
    Fixed Amount
    under
    Calculation Type
    .
  5. Select
    Reported Tips
    under
    Special Type
    .
  6. Verify or edit the settings under
    Exclusions
    . 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.
  7. Enter any additional information under the Main, Tax Exemptions, Special Timing, and Workers' Compensation tabs.
  8. Select
    Enter
    .
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.

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