Cash transactions with tips

How does everyone manage tips with a cash transaction? We are thinking of adding the tip functionality to our POS and I know it only works with a credit card transaction. Our accounting team is very adamant about collecting even cash tips from our staff so they can be reported… How does everyone deal with cash tips in the TR? Do you somehow run them through Vin65?

Thank you!

If I am not mistaken…in California it is the Employees responsibility to report cash tips to us to include in their paychecks. We aren’t controlling cash tips… because we are owners and Mgmt. And we don’t get to participate in cash tips. We are also dependent on the employees reporting it to us.

So…

I’d suggest checking with your State’s labor law policies.

Anything that goes in the Jar with an employee On the Floor… is All Employee (s). If however… anything is handed in cash Directly to Mgmt or Owners (Palm) then that can be kept by Mgmt and Owners. As for reporting and including in Paychecks… that is up to the individual to Report It. ::slight_smile:

At least that is my understanding from all my homework I did speaking with Labor Dept of CA.

With Jamie on this one. I personally believe that pooling tips on the floor is the most fair distribution. With cash tips, mgmt is not really supposed to be involved in the “distribution” and mgmt/owners are not permitted to participate in the pool by law. We recommend if the manager is working opening for an hour or two on their own before other employees come in, that they pull out their tips before the “team” starts working and anything collected whether cash or credit card after the team goes on the sales floor is in the pool. It is divided by the total number of hours worked and distributed as an hourly tip amount via their paycheck if it’s on a credit card, or the cash is distributed that day and they claim cash tips on their time card.

One of the feature requests I have asked Vin65 for is a daily sales journal feature that the manager fills out at the end of the day. Other than that I don’t know of any place in Vin65 other than an assigned task that you could fill out and send to accounting of the tips reported daily by the employees. Good Luck

Uh - I’d check with your paychex or other provider that offers HR related answers. There are some very fine rules that our State labor board has foisted upon service businesses. I do know if all staff agree to tip-pooling, then it is all fair. Managers cannot participate in tip pooling.

Most of the restaurants i have spoken to - the server/host declares to the manager how much tip they are keeping. Then the server tips out the bartender, hostess and bussers. Cooks get no tips.