Tip Reporting Rules

Tip Reporting Rules

Setup - System Preferences - Time Clock Setup

Several business concepts work well with paying out tips to the employee every night. Some concepts are better off with paying tips to their employees when they get their paycheck. The POS system allows you to do either! The POS system can also be configured to ensure proper tip recording is enforced.



The following settings determine how tips are allocated:

Add CR Tips to Pay (Add Credit Tips to Pay): When enabled, allocates credit card tips to an employee's paycheck
Having this setting enabled will cause "Cash Due" on an employee checkout to no longer be affected by credit tips, and will no longer result in an employee keeping money for credit tips at the end of their shift. This setting will also add a new line on your Daily Sales report in the "Accountability" section named "Tips Owed."
Use Net-Net Emp Sales (Use Net-Net Employee Sales): When enabled, removes comps and discounts when determining an employee's sales.
This will also determine how the system calculates the percentage of credit tips in relation to sales when viewing labor reports.
Remove Spiff From Cash Due: When enabled, subtracts any spiffs from the cash due on Employee Checkout instead of paid on payroll.
When this setting is enabled, the Daily Sales Report will have an additional field in the "Accountability" section named "Spiffs Paid."
Do not change the above settings during a pay cycle or balancing issues will occur. Some payroll exports might no properly be able to calculate payroll when these settings are used.

These settings allow you to enforce the proper recording of tips:

IRS Tips Tracking: Uses IRS TRAC compliance features
When this setting is enabled, employees will be required to enter their claimed tips. If an employee enters a tip amount that is less than their credit tips or less than the percent entered in "Min Tips Percent," then the system will warn them and require a manager approval. (see below for warning image)


Min Tips Percent (Minimum Tips Percentage): Minimum percentage of tips employee must declare when participating in the IRS TRAC compliance program

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