Cash and Credit Card tips should be reported through payroll no matter which way you choose to pay your employees. If you are not posting tips through your payroll you could be liable for the payment of income tax for the tips. Don't leave yourself open to this possibility.
For best practices:
1) Cash and credit card tips are deposited into banking with your regular sales deposits.
2) Cash and credit card tips are added to the tip workbook and distributed by employee for hours worked each day.
3) Total tips are then paid to the employees through the payroll.
By following this process, you are no longer handling the cash, other than counting the cash tips and posting them into the POS each day. You will see significant time savings with regard to the handling of tips using this method.
The approved logo Tips Shield Sign is attached or can be downloaded/laminated here: Tips-Shield.pdf
Comments
0 comments
Please sign in to leave a comment.