Set up service charges
Service charge is the compulsory charge for service. An example would be charging 15 percent of the bill for a large dining group. The service charge is not a tip. If an employee receives tips in addition to the compulsory service charge, the service charge will be part of the calculation for minimum wage verification for tipped employees. For more information, visit the United States Department of Labor - Wage and Hour Division (WHD) website.
- SelectSetupthenPayroll Itemsfor your client.
- SelectAdd.
- Enter theDescriptionandReport Descriptionto represent the amount of tips for your employee.
- SelectFixed AmountunderCalculation Type.
- SelectService ChargeunderSpecial Type.
- (Optional) MarkNet PayunderExclusionsto exclude reported tips from net pay.
- Enter any additional information under the Main, Tax Exemptions, Special Timing, and Workers' Compensation tabs.
- SelectEnter.