Closing a manual payment or adjustment using tip calculation

Run Tip Calculation (TP135) to verify that the higher minimum wage (federal or state) is met and to calculate and track tips credited as wages to meet the minimum wage.

When you select Yes in the Manual and Adjustment Only field, Payroll verifies the minimum wage is met and, if a shortage exists, creates a time record for the shortage. If no other payments exist for the employee, Payroll uses the manual payment information to create the record. You can then process the time record in the next pay cycle, or delete the time record, recalculate the manual payment with the proper amount, and re-run Tip Calculation (TP135). The tip credit is calculated and stored on the tip pay records you created.

The tip credit is stored for audit and reporting purposes and is included in the regular rate of pay for the overtime calculation.

Hours worked for tipped employees in tipped jobs are calculated and stored for use in the hours worked method of tip shortfall allocation calculation.

Tip Calculation (TP135) determines which direct or indirect pay code to use if there is no tip time record. The application determines the pay code based on the time record job code and the set up of Direct Tipped Jobs (TP01.1).

We do not recommend using Payroll Close (PR197) to close a manual payment or adjustment. When you use PR197, the close is completed without creation of edits or calculations.

Close a manual payment or adjustment using tip calculation