No company knows more about the hospitality business. That’s why no company does more to help you manage payroll, tips, wages and shift pay. Let us save you money and bring you tax advantages as we steer you clear of trouble with the IRS and the Department of Labor.
PayMaster Hospitality, is an in-house payroll program that specializes in the requirements that apply to tipped employees. We’ve been doing this for over 30 years. In that time we have seen our share of audits and have a pretty good idea of what the various government agencies are looking at.
What sets Paymaster apart?
There is no doubt about it, restaurant owners get a real break when it comes to paying tipped employees thanks to the tip credit. You can save a lot of money when you pay your tipped employees. Not only can you save big on payday but there are advantages come tax time at the end of the year.
But like most things there is a catch. In the case of tipped employees there are a number of catches. And here the devil is in the details. Overtime pay is one example.
- The tipped overtime rate is not the regular pay rate times one and a half.
- You are not allowed to use any non-tipped job paid at a higher rate to help offset the tip credit.
- The Labor Department uses a special method to calculate overtime for employees who open or close at a higher pay rate then their tipped rate.
And this is just a small sample.
Also, it’s not just the Labor Department, you also have to deal with the IRS. Tipped employees can very easily owe back taxes throughout the year. This gets complicated when they owe some weeks and don’t owe other weeks. PayMaster not only keeps track of everything but automatically pays back taxes whenever possible. There is a strictly defined order of which taxes to pay. PayMaster does this for you automatically. Also, PayMaster allows employees to voluntarilly pay money toward their back taxes and pays them in the proper order.
The list goes on … special rules for restaurants, deductions where there may not be enough money “under the control” of the employers etc. But you can count on PayMaster to handle it.