Does anyone have their drivers claim their tips that come through on Credit Cards?
If so how’d that go over with existing drivers?
All the 3rd party apps are making drivers claim tips
Does anyone have drivers reimburse them for the CC processing on their tips?
Yes, wherever there is a document trial like with credit cards, 3rd party, charge forms, and the kitchen tip jar split we declare those tips for the employees. I couldn’t imagine the fallout from an IRS audit for the business and employees if we didn’t.
We do not worry about the CC processing fees on tips. That’s a cost of doing business we account for when setting prices.
You should be aware that your share of FICA taxes paid on tips above minimum wage come back to the employer in the form of a tax credit. Not a deduction, a credit - you get that money back when you file. Make sure your accountant is aware, it’s not common knowledge. IRS Form 8846.
We use Foodtec and all credit card tips for drivers are automatically attributed to them. Drivers must self report cash tips. Drivers are taught during orientation that failing to report cash tips is grounds for termination.
does not matter how it goes over with drivers, it’s a must for credit cards at the minimum and show up on every payroll check since we do not pay out nightly. Cash tips is on them to report. Same goes for our counter tips.
I agree with all of the above!