Restaurant Employees including tip
How do I pay a wait person for a restaurant?
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aizhs1tpqr4yUOacwZ5xHE
02/01/12 8:55am PST
Viewed by asker 02/09/12 7:35am PST
Viewed by asker 02/09/12 7:35am PST
5 Replies
LauraD
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02/01/12 11:56am PST
The solution
If you are using QuickBooks payroll, you need to review the help files for this setup.
Basically, you will have an item, subject to taxes, for the Tips Earned.
Then, another item, not subject to taxes (deduction type), for Tips Paid from Drawer. Use this to minus any tips paid out the cash drawer.
You can set both items up to point to Tips Payable, if you want. Unless you owe the server tips from a previous day/week, this will always zero out.
I hope this helps,
Laura D
My motto:
Keep it as simple as you can. . .with only as much detail as you need.
When in doubt, make a backup first!!
*****
Laura Dion
Cents-able Bookkeeping, LLC
www.centsablebookkeeping.com
Keep it as simple as you can. . .with only as much detail as you need.
When in doubt, make a backup first!!
*****
Laura Dion
Cents-able Bookkeeping, LLC
www.centsablebookkeeping.com
02/06/12 6:56am PST
Let me give you a real example....
my client calls me and tells me his employee worked 22 hrs @ $3.00 and earned $157.00 in tips, obviously all taxable.
22 x 3 = $66.00
+ tips $157.00
total earned: $223 divide this by 22 hrs THIS EMPLOYEE MADE $10.14 per hour and my client does not have to supplement the hourly rate.
IF THE EMPLOYEE WOULD OF MADE $57 IN TIPS:
22 x 3 = $66.00
+ tips $57.00
total earned: $123 divide this by 22 hrs THIS EMPLOYEE MADE $5.59 per hour and my client NEEDS TO SUPPLEMENT the hourly rate by $1.66 to reach the min rate of $7.25.
AM I CORRECT? THANK YOU FOR YOUR CONSIDERATION
02/06/12 12:10pm PST
With my clients who have workers that recieve tips, I calculate what the minimum amount of tips should be in order to make sure the employer doesn't owe them straight time. Here's an example (using my states min. wage numbers)
22 hrs x 8.25 = $181.50
22 hrs x 4.95 = $108.90
181.50 - 108.90 = $ 72.60
So the employee must have reported at least $72.60 in order to meet the wage/hour requirements for tipped employees. If they, for example, have only reported $50.00 for tips, then take 72.60 - 50.00 which equals $22.60, so the employer would owe the employee $22.60 for additional compensation.
They should probably get rid of the employee in my opinion, because they either suck at their job or are lying and pocketing extra non-taxed money...that's just my opinion.
