| The History Of Restaurant Employee Tip Handling | | | | The Solution Of Restaurant Employee Tip Handling |
| No one knows when tipping began. But we do know | | | | Some point of sale software products have tip |
| that in the 1980's the IRS levied new regulations on | | | | tracking built into their time in attendance module. Once |
| restaurant owners to track the tips received by the | | | | you set an employee as a tipped employee the |
| employees of the restaurant. | | | | system will require tip declaration prior to clock out. |
| The magic number of 8% became the benchmark for | | | | Servers and waiters who ring sales will have their total |
| servers and waiters to declare as their tipped earned. | | | | sales tracked. Tips collected through credit card sales |
| Not because it was accurate. Rather, because it was | | | | are tracked and shown on the server closeout report. |
| the minimum amount allowed by the IRS. | | | | Prior to clock out the server/waiter will be shown their |
| The trick is this. Tipped employees in restaurants are | | | | total sales, the charge tips collected and then asked to |
| generally not paid minimum wage. The amount varies | | | | declare their cash tips. |
| from state to state but it runs between $2.15 to $3.15 | | | | Some point of sale products do allow for programming |
| per hour. The IRS assumes that the tips received will | | | | flexibility with this feature: |
| make up the difference between this low hourly | | | | You may change the minimum declaration from the |
| amount and the true minimum wage that is currently | | | | default of 8%. |
| $5.15 per hour. If this is not the case, then it is up to the | | | | You may change the requirement to declare tips at |
| restaurant owner to make up the difference between | | | | clock out. |
| what the tipped employee earned + declared tips and | | | | You may opt to have the system print a chit with their |
| minimum wage. This makes accurate tip declaration, | | | | tips shown. |
| tracking and reporting a vital aspect of running a | | | | You may opt to not show charge tips on the |
| restaurant. | | | | declaration screen. |
| The Need For Restaurant Employee Tip Handling | | | | The Benefit Of Restaurant Employee Tip Handling To |
| You need a employee time clock system that | | | | You |
| recognizes tipped employees, tracks their individual | | | | How do you measure the amount of relief a person |
| sales, any charge tips collected and requires them to | | | | can have knowing that your point of sale system is |
| declare cash tips at the end of their shift. | | | | enforcing tip regulations levied by the IRS? Not to |
| You also need a employee time clock system that | | | | mention the mass amount of time savings in tracking |
| can handle tip sharing, tip pooling and tip out to bus help, | | | | declared tips, charge tips and hour worked for every |
| bartenders and other servers. | | | | tipped employee. |
| You need a employee time clock system that will | | | | This is one headache you don't want to have to deal |
| track the hours worked and tips collected and | | | | with. If you have tipped employees you need a good |
| recognize problems with employees not declaring | | | | point of sale system with tip tracking and time and |
| enough tips to meet the minimum wage requirements. | | | | attendance. |