When Employee Tips Don't Make Minimum Wage - Tip Shortfalls

In many states, tipped employees can be paid less than minimum wage as long as their tips add up to enough to make up the difference.   In Thr!ve, you can make sure that you are complying with these minimum wage laws on tipped employees.  

This feature is available in version 7.5.1 and higher.

Set up your Minimum Wage.
You must enter a minimum wage to activate this feature.
Navigate to Configuration > Employees > Timeclock Payroll

Enter the minimum hourly wage for your area.
Save your changes.

Reporting Tip Shortfall
The payroll report will show you the tip shortfall for any employee for the time period.  

For example, here we see Bob worked 2.28 hours as a server at $2.13 per hour.   He declared $4.00 in tips, which left a shortfall of $11.09.   The "Total Gross" adds the shortfall to the wages and tips to make sure minimum wage is met.   The "Amount To Pay" subtracts out the tips that were already paid.

Keep in mind, the "Tips Paid" on this report will be declared tips, if this job type is set to declare tips at clock off.  If not, it will be any actual tips (typically credit card tips) entered on this employee's orders.

The total tip shortfall for the day will also be listed on the Manager Home Sales report.


Since this report will update throughout the day, it may appear to overstate the tips shortfall until employees have clocked out and declared their tips for the shift.

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