Tips processing
You can calculate tips, create employee tip records, calculate shortfall allocation, view
current and historical tips records, create adjustments, and process manual payments in
HR Payroll.
Note: Shortfall
allocation is the method used to determine whether employees have reported enough of their
direct tips, according to IRS requirements.
If reported tip income is recorded in the employee time record, employee tips records are generated when the action is run. These records have a check type of Payroll tip, an initial status of Current Year Not Maintained, and the Current record type.
Before you can process employee tips records, you must ensure tips functionality has been set up for your organization.
See Tips setup.