How does everyone handle distribution of credit card tips? What we used to do was keep a running total of tips collected, match the amount, then divide the amoutn evenly among the employees and cut everyone a check about once a quarter.

We just found out that tips are supposed to be paid withn a certain period (24 hours maybe?) and are looking for an easy way to pay them (without the counter people getting all the money and the guys working the table being left out). We really dont want to have to divide up a few dollars in tips between 10-12 people every day.

From the Department of Labor Fact Sheet #15:

Credit Cards: Where tips are charged on a credit card and the employer must pay the credit card company a percentage on each sale, then the employer may pay the employee the tip, less that percentage. This charge on the tip may not reduce the employee’s wage below the required minimum wage. The amount due the employee must be paid no later than the regular pay day and may not be held while the employer is awaiting reimbursement from the credit card company.

Never thought about reducing tips by the credit card charges.

We will distribute all tips received to all employees in proportion to hours worked and pay level (which is determined by skills mastered). POS keeps track. Paid with paycheck with applicable withholding.