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Key takeaways In hospitality and service businesses, tips are a major component of employees’ take-home pay. The challenge for owners and managers is figuring out how to pay tips to employees in a way that’s fast, fair, and compliant. The tip payout method you choose affects not just payroll, but employee morale, guest experience, and…

Tip credits are an overwhelmingly misunderstood topic in hospitality payroll. Ask 10 managers and you’ll probably 10 ten slightly different answers.  But understanding tip credits is both a legal obligation and a key factor in keeping staff happy, staying compliant with wage laws, and maintaining efficient operations. If you’re confused about how tip credits work,…

If you’ve ever had to chase down handwritten logs, cross-check manager spreadsheets, and still felt unsure if everything would line up at tax time, you know the stress of reporting tips to the IRS.  Tip reporting isn’t complicated in theory, but in practice, it’s a tangle of deadlines, thresholds, and paperwork that steals hours you…

For hospitality and service industry employees, getting tipped out is the best part of the shift. For owners and managers…it can be a nightmare. Splitting tips fairly is key to retaining employees, maintaining great service, and avoiding legal trouble. But tip pooling — one of the most common tip splitting methods — can be difficult…