Paying driver in IL... how do you pay?

Pizza Shop Talk The Think Tank
1

IL Minimum Wage
Regular $8.25
Tipped $4.95

So at my first pizzeria when we delivered 8 years ago, we paid a little above minimum, say $5.25hr. then added the drivers Tips and pulled taxes. However, there was always an issue with drivers not giving us the correct amount of tips they had actually received… and by IL law, if the tipped employee does not make at least the $8.25hr with the tips for that said hour, then the employer pays the remainder.

So to combat this, here is an example of what our accountant did:
Hourly Rate: $5.25 @ 8hr = $42
Tips: $3 @ 8hr = $24
Total $66
Then taxed the $66

This way their tips are “assumed” to be just enough to cover minimum wage and taxed correctly.

So my question is, does anyone else pay like this? Or what other ways are you able to pay?

2

We have always paid the regular minimum wage starting, with raises after 3 months. Some drivers are actually paid up to several dollars above minimum wage because of their skill set and experience.

Typical driver:

Hourly Rate: $8.75/hr taxed at same.
Tips: $50 to $100 per 5 hr shift.

Remember, you get what you pay for.

3

We pay $6 per hour plus tips. Now that about 75% of our sales are paid by credit card just declaring the credit card tips more than takes care of it for us.

4

we pay 8.25 an hour ,no mileage no gas.