Hello everyone, how does everyone handle processing fees with employee tips? Last year’s tips amounted to just over $100,000.00. At 3%, we pay out $3000.00 yearly to process other people’s money. Does anyone deduct that amount from tips? My thoughts are we pay to process our money, so why shouldnt they pay to process their money?
When i do my staff credit card tips, i pull the cash every day from my sales, which my POS keeps track, put in a separate bank bag and every 2 weeks(1st & 15th) i pool all the cash and split it up between employees and deduct 3% from each, and my employees get paid cash every 2 weeks , and put the cash(3%) back into the bank deposits, thats how my accountant said is the easiest, which has worked great for the last 20+ yrs.