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Administrator Guide
Last Updated: 2023-06-23
Create Earnings for Tips (USA)

Create Earnings for Tips (USA)

Security:
Set Up: Payroll (Calculations - Payroll Specific)
 in the Core Payroll functional area.
Create earnings to calculate employee-reported and employer-controlled tips.
  1. Create an earning to calculate employee-reported tip wages.
    1. Access the
      Create Earning
      task.
    2. Enter a name, such as
      Employee-Reported Tips
      .
    3. On the
      Effective Dated
       tab, select
      Payroll Input
       in the
      Calculation
       field and select the
      Input Amount Allowed?
       check box.
    4. On the
      Non-Effective Dated
       tab, add the earning
      Employee Reported Tips [USA]
       in the
      Groups
       field.
      Don’t use this pay component group for an earning with the pay component group
      Employer Controlled Tips [USA]
      .
  2. Create an earning to calculate employer-controlled tip wages.
    1. Access the
      Create Earning
      task.
    2. Enter a name, such as
      Employer-Controlled Tips
      .
    3. On the
      Effective Dated
       tab, select
      Payroll Input
       in the
      Calculation
       field and select
      Input Amount Allowed?
      . Alternatively, you can create a calculation for pooled tips, such as
      Percent x Payroll Input
      .
    4. On the Non-Effective Dated tab, add the earning in the
      Groups
       field.
      Don’t use this pay component group for an earning with the pay component group
      Employee Reported Tips [USA]
      .
You can add the groups that include these earnings to pay accumulations, run categories, and payslip configurations.
Add employer-controlled tips to gross or net pay.