Set up service charges

Service charge is the compulsory charge for service. An example would be charging 15 percent of the bill for a large dining group. The service charge is not a tip. If an employee receives tips in addition to the compulsory service charge, the service charge will be part of the calculation for minimum wage verification for tipped employees. For more information, visit the United States Department of Labor - Wage and Hour Division (WHD) website.
  1. Select
    Setup
    then
    Payroll Items
    for your client.
  2. Select
    Add
    .
  3. Enter the
    Description
    and
    Report Description
    to represent the amount of tips for your employee.
  4. Select
    Fixed Amount
    under
    Calculation Type
    .
  5. Select
    Service Charge
    under
    Special Type
    .
  6. (Optional) Mark
    Net Pay
    under
    Exclusions
    to exclude reported tips from net pay.
  7. Enter any additional information under the Main, Tax Exemptions, Special Timing, and Workers' Compensation tabs.
  8. Select
    Enter
    .

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