Tip Outs

[patrickharvest]

How do any of you handle tipping out support staff? Do you just run a shift report, take it to the manager with an excel spreadsheet, and then put in a negative (if all non cash tips) in to shift review (so we are not taxing the server on additional tips that they had to tip out?)

[YB · Accepted solution]

I designed a pretty idiot-proof spreadsheet that will take the net tips for servers and bartenders (we withhold part of the credit card commissions), and the tip out is deducted from the server pool and put into the busser pool or the runner pool (they're tipped different percentages).  This way, all employees are taxed on their respective tips.  Cash tips are put in under a different code, and then deducted out on the paycheck since they've already received the money (that way their taxes calculate properly).  It may involve a few extra steps, but it's bulletproof and in the event of an audit, I have records that show punches/shift numbers, tips taken in, and tips disbursed.  Everything ties out.

[patrickharvest]

Thank you for taking the time to answer this.  This is pretty much what we are doing so I am glad we are on the right track.  We just need to make a few adjustments.  Again, I appreciate your time and response!