These are some common, frequently asked questions regarding payroll. If you have another question you don't see the answer to please email [email protected]
What does it mean when you claim a tip on a ticket?
Claiming a tip means that the employee is reporting and recording the tip as income. Employees may claim a tip on an open ticket. Two types of tips exist:
Direct tip: This is a tip that is given directly to the employee. The tip amount does not appear on the client's receipt. The tip amount is reported in payroll (for reference), but is not included in the payroll total. Payroll taxes for the tip amount are calculated and applied to payroll.
Withheld tip: The tip is withheld (not given to the employee) until the tip is settled. A withheld tip may be settled by using the Settling feature, i.e. settle the tip at the end of the employee's shift, or the tip can be settled by calculating payroll. The withheld tip appears on the client's receipt. A withheld tip may be used when the client is paying by check or credit card. Payroll taxes are applied to the withheld tip.
What does it mean when you settle a tip?
To settle a tip means that if your business took the tip money from the client, put it in the cash drawer, and then at a later time you give the employee the money for the tip, i.e. a customer may pay by check or credit card, and include the employee's tip on the check or credit card. Your business settles the tip when your business gives the employee the money for the tip.
What Impact Does Backbar Have?
Backbar is the amount in products used to support a service, i.e. if a Haircut costs $50, but $10 of Conditioner is used to while performing the service, the backbar is $10.
Single Commission Payroll System: A standard backbar amount can be defined and exceptions created as needed per employee. This backbar amount is subtracted from the service price when determining employee commission.
Dual Commission Payroll System: A standard backbar amount can be defined and exceptions created as needed per employee. This backbar amount is subtracted from the service price when determining employee commission. This backbar amount is subtracted only when a service is used and not when purchased.
Where Can I Get My State Tax Tables?
Federal tax tables are built into the software, but state tax tables are not. Some states have a percentage tax and some states have a tax table. You need to check with an accountant for your state tax information and to get a copy of the state tax table. You can also search the Internet for a copy of your state tax table. See the article HERE for more instructions on creating tax tables.
How Much Should I Configure for Social Security, Medicare, City, Local or Other Deductions or Taxes?
You should check with an accountant and then configure payroll accordingly.
What is a Booth Renter Deduction?
Some businesses only have booth renters and no employees. Each month, the booth renters pay the business rent for using space inside the business.
What if I Calculate the Incorrect Payroll Date? How Do I Fix it?
If payroll has been run for an incorrect date range, the payroll calculations after and including the incorrect payroll need to be recalculated. See the Calculating Payroll and Recalculating an Incorrect Payroll Report portions of the article HERE for the proper steps.
What is a Payroll Adjustment?
A payroll adjustment is any currency amount that you wish to give or take away from an employee. A positive amount indicates that you are giving funds to the employee. A negative amount, which will appear in parenthesis, indicates funds being subtracted from the employee's payroll. This feature is useful if, for example, an employee unexpectedly worked some extra hours over the weekend during the last pay period after payroll had already been run. You can pay the employee the difference during the next pay period with a payroll adjustment.
Why Don't All of My Employees Appear When I Run a Payroll Report?
Your employees may not appear for either of the following reasons:
You have no closed tickets for the range of dates that you selected to run payroll for. Some important payroll calculations are taken from closed tickets.
You have "No" selected under the Include field on the Payroll Configuration screen.
How Can I Test My Payroll Configuration and Settings?
Select Calculate New Payroll from the Accounting pull-down menu.
Click the button next to practice. Run test payroll and do not save results.
I Added an Employee Bonus for a Product/Service. Why are the Bonuses Not Showing on My Payroll Calculations?
In order for a bonus to be given to the employee, the employee must be set up to receive commission. For a product to have a bonus, the employee should have product commission enabled, and likewise for services. If the employee should receive a bonus only for some products/services, but will receive either no bonuses, different bonuses, and/or no commission for other products/services, then the product/service commission should be enabled and set at a straight percentage of 0%. This will keep the commission enabled, but not give anything to employees unless a bonus amount is entered for individual products or services.
Which Amounts are Commission Based On?
Commission amounts are calculated by taking information from closed tickets and applying the settings you have chosen to the total sales amounts for each employee. These amounts will be obtained differently depending on the commission system being used:
Single Commission System: Commission is given to employees when services are performed or products are sold. From individual closed tickets, the commission amount is based on the price of the service, subtracting any discounts and backbar, and multiplying by the number in the Quantity Used column.
Dual Commission System: commission is given to employees when services are purchased and when services are performed. From individual closed tickets, the commission when purchased amount (CWP) is based on the price of the service, subtracting any discounts, and multiplying by the number in the Quantity Purchased column. The commission when used amount (CWU) is based on the price of the service, subtracting any discounts and backbar, and multiplying by the number in the Quantity Used column.