As with 401(k) deductions, companies may handle employee tips differently based on the type of business and local policies. In this example, cash tips are not paid directly to the employee in the paycheck.
Setting up the tips payroll field
If you selected Yes to recording tips when initially setting up payroll, Sage 50 automatically creates a Tips employee payroll field. If you do not have a Tips payroll field, you can set one up manually. How do I set up a tips payroll field?
Recording employee cash tip income
During payroll entry, enter the total tip income that the employee is reporting over the current payroll period. How do I record employee cash tip income?
Recording employee charge tip income
Some companies may handle credit card tip income differently from cash tip income. Employers must distribute employee tips paid by customer credit cards. You may want charge tips to be reported separately from cash tips to account for income the employer distributes to the employee. Tell me more about setting up charge tips.