Examples of TIPS Setup

 

TABLE TIPS REPORTED-- Create an Earning Code for this tip code as follows:

These are tips the employee has reported to you, that you will not be disbursing to them via their paycheck, however, taxes must be calculated on these tips.

Category -- T - Tips

Type -- 01 - Fixed Rate

Frequency -- 0 - Every Pay Period

Leave the Amount, Limit & Balance all set to 0.

If you would like this Earning code to pop up on all paycheck entry screens, click the Global click box. If you only want it to be on some employees paycheck entry screens, add this code to the Earnings Pick List (Payroll tab in Employees) for the Employees you wish to utilize this Tips code.

NOTE: Tips have to be added in the Earnings Pick list to show up on the Tips Report.

NOTE: Tip Type earnings are brought onto the check for taxation but won't be considered in the net (other than changes due to taxation). They are automatically deducted back out of the Net.

CREDIT CARD TIPS and other tips disbursed via the paycheck -- Create an Earning Code for this tip code as follows:

These are tips that have been collected by the employer and will be disbursed via the paycheck. This in all practicality is an earning, however will report separately on the W2/W3 and 941.

Category -- C- Credit Card Tips

Type -- 01 - Fixed Rate

Frequency -- 0 - Every Pay Period

Leave the Amount, Limit & Balance all set to 0.

If you would like this Earning code to pop up on all paycheck entry screens, click the Global click box. If you only want it to be on some employees paycheck entry screens, add this code to the Earnings Pick List (Payroll tab in Employees) for the Employees you wish to utilize this Tips code.

NOTE: Tips have to be added in the Earnings Pick list to show up on the Tips Report.

 

ALLOCATED TIPS -- Create an Earning Code for this as follows:

NOTE: Allocated tips cannot be automated (There are no Restaurant gross receipts calculations) at this time in CCS Payroll, however can be entered as required for proper reporting on the W2.

Category -- A- Allocated Tips.

Type -- 01 - Fixed Rate

Frequency -- 0 - Every Pay Period

Leave the Amount, Limit & Balance all set to 0.

Note: Allocated tips do not increase the gross pay nor net payroll, nor do they have any affect on any taxes or other calculations. They are information only on the paycheck and are entered only for reporting purposes on the W2 and other applicable reports.

If you would like this Earning code to pop up on all paycheck entry screens, click the Global click box.

If you only want it to be on some employees paycheck entry screens, add this code to the Earnings Pick List (Payroll tab in Employees) for the Employees you wish to utilize this Tips code.

Enter this employees # of hours worked in the paycheck entry screen, then enter the supplemental wages in the code that you create for their supplemental wages to make up the difference.

If Allocated tips are something that will only be used occasionally, and you don't want to see this code on the paycheck entry screen, it can be entered on the fly. As you are creating the paycheck and you come to the last line on the Earnings side, press enter in the Total column and the cursor will drop down to the CD column in the 1st blank line, enter the code # that you assigned to the allocated tips (or enter "AL" to search) and press enter. Now enter in the desired amount of allocated tips in the total column. Hold the enter key down to calculate all of this employee's deductions.