Configuring allocation levels for tips

  1. Select Payroll Administrator > Setup > Tips > Allocation Level.
  2. Click Create.
    Note: Allocation levels are used to define and calculate independent levels of shortfall allocations. These can be set up for an HR organization and optionally HR organization units or shifts.
  3. Optionally, specify an organization unit and a shift for the allocation level.
  4. In the Allocation Setup section, specify this information:
    Allocation Method
    Specify an allocation method for the tip shortfall amount.
    • Hours Worked – uses the ratio of hours worked by an individual to the total hours worked by all employees in the allocation level for the same time period.
    • Individual Gross Receipts – uses the ratio of gross receipts specified for an individual to the total gross receipts specified for the allocation level for the same time period. To use this method, the allocation level must account for the gross receipts of each individual.
    Allocation Percent
    Specify an allocation percent. The industry standard is .0800. The Internal Revenue Service minimum liability is 8% of the gross receipts for each allocation method.
    Control Totals
    Select this check box to require the total gross receipts specified in the allocation method to be equal to the sum of the individual gross receipts specified for that allocation level for the same period.
    Transmitter Control Code
    Specify the five-character alphanumeric transmitter control code assigned by the Internal Revenue Service for electronically reported forms.
  5. In the Establishment Details section, specify this information:
    Note: If you specified a shift in the Shift field, these fields are not available.
    Establishment Number
    Specify an establishment number for the allocation level.
    Establishment Type
    Specify an establishment type for the allocation level. There are four types of establishments:
    • Evening Meals Only
    • Evening And Other Meals
    • Meals Other Than Evening Meals
    • Alcoholic Beverages
    Establishment Name
    Specify an establishment name for the allocation level.
    Location
    Specify a location for the allocation level.
  6. Click Save.