Allocate Tips screen

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Our Support department is closed on Friday, April 28th for a company event. However, limited Accounting CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline for quarterly payroll tax forms.

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For large food or beverage establishment clients, you can use the Allocate Tips screen to calculate and allocate the tips that employees need to reach the required percent of the company's gross tipped sales.

Choose Actions > Allocate Tips.


See also: Allocating tips

Fields & buttons

Select the year for which to allocate tips.

Choose whether to allocate tips based on the total amount of sales entered via payroll check entry for the employee or based on the total number of hours worked by the employee during the selected year.

  • Tipped sales. If you select this method, the employees must have sales amounts entered during payroll check entry.
  • Hours worked.If you select this method, the employees must have a pay item set up that uses the Tipped Wages special type.

Use the following fields to determine tip allocation amounts for the client. Some fields allow you to override the retrieved information and recalculate the information in the Calculation grid.

  • Gross tipped sales. Enter the client's total receipts (gross sales) from food or beverage operations.
  • Tip percentage. This is the percentage the application will use to calculate the tip allocation. The default percentage is 8.00%, but you can override this percentage if necessary.
  • Required tips declaration. This is the total amount of tips the client is required to report (the gross tipped sales amount multiplied by the tip percentage).
  • Indirect tips. This is the total amount of indirect tips for all employees for the selected year. You can override this amount if necessary.
  • Direct tips required. This is the total amount of direct tips that the client is required to report, based on the tip percentage entered above.
  • Reported tips. This is the total amount of reported tips for all employees for the selected year. If this amount does not match the Reported Tips amount in the Calculation grid, the application displays a warning message.
  • Tips to allocate.This is the tip amount the client needs to allocate among all the directly tipped employees, based on the information entered in the fields above.

The grid displays only employees that have at least one pay item that uses the Reported Tips special type.

The grid consists of the following columns.

  • Employee ID. Displays the employee's ID.
  • Employee Name. Displays the employee's full name.
  • Sales/Hours. If you selected Tipped sales as the tip allocation method, this column displays the total sales recorded that year for the employee. If you selected the Hours worked method, this column displays the total hours associated with the Tipped Wages pay items that the employee worked that year. You can override the information in this column.
  • % of Total. Displays the percentage of the client's total sales or hours contributed by the employee.
  • Required Tips. Displays the tip amount that is required for the employee to meet the allocation requirement.
  • Reported Tips. Displays the employee's reported tips for the year. You can override the fields in this column.
  • Shortfall. Displays the amount of tips that the employee needs to reach the allocation requirement.
  • Shortfall %. Displays the percentage of the total shortfall of the client that this employee represents.
  • Tips to Allocate. Displays the amount of tips that will be allocated to the employee when you click the Allocate button.

This row displays the totals for all columns in the Calculations grid.

Click this button to clear all overrides for the current client's selected year.

When you have finished entering information for this screen and are ready to allocate tips, click this button. The application will store the Year and the Tips to Allocate amount for each employee.

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