Tip Makeup is a labor rule that ensures tipped employees earn at least the required minimum wage for a workweek. If an employee’s combined hourly wages and reported tips fall below the configured minimum wage, the system automatically adds a tip makeup earning to cover the difference.
Tip Makeup rules are assigned by location and apply during payroll calculation.
Security
Users with the following permission will be able to create tip makeup rules:
Labor → Labor Rules → Tip Makeup Rules → Create Time Makeup Rules
Users with the following permission will be able to edit tip makeup rules:
Labor → Labor Rules → Tip Makeup Rules → Edit Tip Makeup Rules
These permissions can be added to custom user roles or individual users. The Permission Access report can be used to determine which user roles or users already have these permissions assigned. For more information, see User Setup and Security.
Open an tip makeup rule
Select Admin from the left navigation rail.
Expand Workforce.
Select Labor rules.
Select the rule to open its record.
Tip:
Find the rule Type in the Type column. In this example, Break type is selected.
Change locations assigned to a tip makeup rule
Follow these steps when a location opens, closes, or moves to a different rule:
Click steps to expand for additional information and images.
1) Select the dropdown arrow by Locations.
2) Check additional locations and/or click the ‘X’ to remove locations.
Configure tip makeup
Follow these steps to configure the tip makeup amount:
Click steps to expand for additional information and images.
1) Navigate to the Tip Makeup section.
2) Adjust the Minimum wage amount.
In the Minimum wage field, enter the hourly minimum wage amount that tipped employees must meet.
Save the rule
Confirm and review all fields in:
Name & locations
Tip makeup
Click Save.
Changes apply to future payroll calculations.
