Handling Cash Tips

Effective from October 1st, 2024, the Fair Tipping Act aims to ensure that all tips left by customers reach workers, and that the allocation of these tips is distributed fairly. The Act primarily covers “employer received” tips, including non-cash and cash gratuities that an employer has control or direction over.

Our partner, TiPJAR has created a useful guide to help you understand the new act, TiPJAR’s guest blog outlines an 8-step process in achieving compliance with the new legislation, starting with creating, communicating and implementing a tipping policy.

Any cash tips received should be managed through the Finance module by entering miscellaneous income.

Setup

Head Office Site Master

Income Type & Assignment to Sites

Navigate to Finance → Configuration → Misc Income Types

Add a new Income Type 'Cash Tips'
Set the Inclusive Tax Rule to be a Zero Rate Rule

If there is not already a Zero Rate tax rule set up, use the help topic here to create a new rule

Navigate to Finance → Estate Settings → Site → Misc Income / Expenses

Assign the Income Type to the required Sites

Entering Cash Tips

At the end of the business day the total cash tips received should be entered into the Finance module to provide a full audit trail of all tips received.

Site Master Site

Navigate to Finance → Cash Management → Misc Income

Add a New Income
Select the Cash Tips Type
Enter a Reference
Ensure Cash is selected in the Payment Method drop down
Enter the Cash Tips Amount
Click Finish

Miscellaneous income entered for cash tips can be viewed on the following reports:

7 Day Statement of Trade (within the cash reconciliation section)
Misc Income Report