Configuring tips for local minimum wages

  1. Select Payroll Administrator > Setup > Deduction Structure > Tax Authorities
  2. Select and open the tax authority with a local minimum wage record to configure tips for.
  3. Click Local Minimum Wage, then click View for a local minimum wage record.
  4. On the Tipped Local Minimum Wage tab, click Create.
  5. Specify this information:
    Note: If no tipped local minimum wage records exist, the local minimum wage is used when calculating tips.
    Begin Date
    Specify a begin date.
    Job
    Optionally, specify a job that the local minimum wage applies to.
    Note: These rules apply to the Job field:
    • Only tipped jobs can be selected in the Job field of the tipped local minimum wage.
    • If the Job field is left blank, tipped local minimum wage is applied to all tipped employees with the same location regardless of the job.
    • If there is a tipped local minimum wage set up for a specific job, that rate is used for all employees with the same location and job.
    Short Description
    Optionally, specify a short description for the tipped local minimum wage record.
    Note: When you specify a job, the description defaults from the job you selected.
    Tipped Minimum Wage
    Specify the tipped minimum wage amount.