To set up Tips in Payroll:

1. Set up a deduction detail for tips on the Payroll > Master File Maintenance > Basic Options > Pay Detail Tab.
2. On the Payroll > Master File Maintenance > Basic Options/ Pay Detail Tab, set up an earnings detail for tips. NOTE: If employees might have the possibility not to meet minimum wage requirements. Also, set up an earnings detail for Other earnings to allow you to enter additional pay to meet minimum wage.
   
3. OEnter the tip earning and deduction details for the applicable employees on the Employee/Check Maint > Employee Master Screen, and enter the Tip earning and deduction details for applicable employees.
   
4. Start a Payroll cycle following normal procedures. On the Pay Summary Maintenance screen, enter the tip earnings for each employee. When you enter the tip earnings, the deduction amount is automatically copied; you do not have to enter the amount.
   
5. Print the Hours Proof list to verify that all employees meet minimum wage requirements. An error message will print on the Hours Proof list is an employee does not meet the minimum. You add the additional pay to the Pay Summary Maintenance > Other Earnings.
   
6. Finish the payroll cycle as usual.