Restaurant Employee Tip Tracking Easier Through A Point Of Sale System

Restaurant Employee Tip Handling

The History Of Restaurant Employee Tip Handling

No one knows when tipping began. But we do know that in the 1980's the IRS levied new regulations on restaurant owners to track the tips received by the employees of the restaurant.

The magic number of 8% became the benchmark for servers and waiters to declare as their tipped earned. Not because it was accurate. Rather, because it was the minimum amount allowed by the IRS.

The trick is this. Tipped employees in restaurants are generally not paid minimum wage. The amount varies from state to state but it runs between $2.15 to $3.15 per hour. The IRS assumes that the tips received will make up the difference between this low hourly amount and the true minimum wage that is currently $5.15 per hour. If this is not the case, then it is up to the restaurant owner to make up the difference between what the tipped employee earned + declared tips and minimum wage. This makes accurate tip declaration, tracking and reporting a vital aspect of running a restaurant.

The Need For Restaurant Employee Tip Handling

You need a employee time clock system that recognizes tipped employees, tracks their individual sales, any charge tips collected and requires them to declare cash tips at the end of their shift.

You also need a employee time clock system that can handle tip sharing, tip pooling and tip out to bus help, bartenders and other servers.

You need a employee time clock system that will track the hours worked and tips collected and recognize problems with employees not declaring enough tips to meet the minimum wage requirements.

The Solution Of Restaurant Employee Tip Handling

Some point of sale software products have tip tracking built into their time in attendance module. Once you set an employee as a tipped employee the system will require tip declaration prior to clock out.

Servers and waiters who ring sales will have their total sales tracked. Tips collected through credit card sales are tracked and shown on the server closeout report. Prior to clock out the server/waiter will be shown their total sales, the charge tips collected and then asked to declare their cash tips.

Some point of sale products do allow for programming flexibility with this feature:

* You may change the minimum declaration from the default of 8%.
* You may change the requirement to declare tips at clock out.
* You may opt to have the system print a chit with their tips shown.
* You may opt to not show charge tips on the declaration screen.

The Benefit Of Restaurant Employee Tip Handling To You

How do you measure the amount of relief a person can have knowing that your point of sale system is enforcing tip regulations levied by the IRS? Not to mention the mass amount of time savings in tracking declared tips, charge tips and hour worked for every tipped employee.

This is one headache you don't want to have to deal with. If you have tipped employees you need a good point of sale system with tip tracking and time and attendance.Jerry D. Wilson is Director of Internet Sales for DirecTouch Restaurant Point of Sale. With over 25 years of hospitality point of sale experience, he has written several articles explaining the benefits of touch screen and retail point of sale software. Please visit http://www.directouchpos.com or http://www.directretailpos.com for more information.

HR Software - Things To Consider

Businesses, over time, have witnessed immense transition and so have the various departments and functioning structures. The once laid back attitudes have now been replaced by enthralling energy and a desire to succeed. In such circumstances, employees have become the key force behind any small or large-scale business? success. Rather, the increasing importance and associated impact of employees on the functioning and eventual result has laid grounds for including them as assets in financial evaluations.

Considering that a factor is so crucial, it becomes imperative to give them due attention by means of granting the deserved treatment, in terms of rewards and motivational tools. However to enable apt treatment for all it is essential to have an automated system in place which can precisely monitor, record and analyze the work force?s potential, thereby leaving no scope of error. This can be made possible only be deploying a smart professional who can fulfill not only the mentioned requirements but can act as a perfect HR partner. This graceful expert, christened as HR software cannot only solve appraisal related issues but is an overall HR assistant.

How to Choose?? Before picking up HR software for your organization, there are various aspects to be kept in mind. To start with, define your need and purpose you expect this software to solve for you. The need factor depends upon the organization type (i.e. whether it is service or a manufacturing industry), the kind of facilities already available and the size of the organizations (i.e. the number of employees). To be concise about the need, it is suggested to undertake an extensive gap analysis, which would enumerate the difference between present and future requirements.

Based upon the need as defined, decide if you want to go for standard software or a customized one is sought. Customized software is suggested for small organizations, while the bigger ones that can afford the relative training cost and require aid that is more extensive can take up standardized offerings.

Various HR software suppliers can fulfill your requisitions; however before selecting any make sure that technical assistance, diligent training and post purchase customer support are included in the package. Most of the packages can also be modified as per requirements at a later stage, if sought.

Benefits: This HR software is a gift of the technical advancement to the human resource departments of the firms, which are often confronted with employee related issues. This one time expenses can considerable reduces the overall expense structure of a firm by imparting the requisite efficiency and expertise.

Hiring, training, performance appraisals, remuneration, transfers and promotion, succession planning, firing, etc. are few of the functions facilitated by HR software. Additionally various other facilities as desired can be programmed.

HR software is almost like a dream come true for the HR & Personnel departments, which were continually loaded with time consuming and clerical administrative jobs. The valuable time of your HR personnel can now be diverted towards more productive jobs, all thanks to HR software!

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

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