Tip Calculation (TP135)

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.

Processing Effect

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.

If there is no tip time record, TP135 determines which direct or indirect pay code to use based on the job code on the time record and on how TP01 is set up.