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Tips Setup

Tips Management #

Overview #

This article provides guidance on how to set up and manage tips in the ProPay payroll software. It covers the initial setup process, paycheck entry for tips, and how tips are calculated and reported.

Setting Up Tips #

  1. Navigate to the Employer Set-up Page-2.
  2. Locate the checkbox labeled “Will your payroll Include Tips?”
  3. Check this box to enable tips management in your payroll system.

Entering Tips During Paycheck Processing #

When processing paychecks, you’ll find the TIPS field in the Earnings section. Here’s how to enter tips:

  1. Look for the TIPS field in the Earnings section.
  2. Enter cash tips in the “Cash Tips” field.
  3. Enter charge tips in the “Charge Tips” field.

The system will automatically calculate the total amount of these two types of tips.

Important Note #

The Total Tips field is the only field reported on 941 and W2 forms.

Payroll Calculation #

Tips are processed as follows:

  • Total tips are automatically added to the Gross Wages.
  • Cash tips are deducted from the net amount on the employee’s paycheck.
  • Charge tips are added to the employee’s net amount on their paycheck.

Visual References #

For visual guidance, please refer to the following screenshots:

  1. Payroll Calculation Screen
  2. Batch Mode Screen

(Note: Actual screenshots would be inserted here in the final document)

Troubleshooting #

If you encounter issues with tips management:

  1. Verify that the “Will your payroll Include Tips?” checkbox is selected in the Employer Set-up Page-2.
  2. Ensure you’re entering tips in the correct fields (Cash Tips and Charge Tips) during paycheck entry.
  3. Check that the Total Tips field accurately reflects the sum of Cash Tips and Charge Tips.

If problems persist, please contact our support team.

Additional Help #

For more information or assistance:

  • Use the help menu within the ProPay payroll software.
  • Visit our website at https://www.Paysoft.com for additional resources and support.

Feedback #

We value your input! If you have suggestions for improving this article or encounter any issues not addressed here, please contact our support team or use the feedback form on our website.