Tax-free payment of tips to employees

Tax-free payment of tips to employees


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What
In this guide, we will show you how your employees can get their tips paid out as easily and tax-free as possible.

Where
Admin: Store management > Stores > Edit > Settings > Tip > Tip for employees tax-free > Yes.


1. Requirements for tax-free payment

The following conditions must be met for the payout to work:
  1. Tipping must be activated. 
    Go to Admin: Global settings > Global store settings > Other settings > Webshop settings. 
    Activate the tipping function there under "Allow tips" and set it to "Yes".



  1. The tip recipient must identify themselves at the POS by entering their personnel number before entering the order.
    This is done by entering the personnel number before entering the order (the procedure is described below).
    Tips from online orders are automatically assigned to the respective driver.



2. Setup in the administration area

2.1 Cashbook category and cashbook template

In the cash book, the incoming and outgoing employee tips are recorded individually. For this purpose, a cash book category (e.g. "Payment of employee tips") and a corresponding cash book template with the booking text "The tip from %1$s was paid out." are created.

Procedure for the cashbook category and cashbook template:
1. First create a "Cashbook category" and go to Admin: Accounting > Cashbook category.
2. Create a category called e.g. "Payment of employee tips".





3. Then create a cashbook template under Admin: Accounting > Cashbook template.
4. Assign a name e.g. "Payment of employee tips".
5. Enter the posting text, e.g. "The tip from %1$s was paid out.".
6. Select the previously created "Cashbook category".
7. Set the entry for "Type of register process" to "Payout tip".




2.2 Activating tips for employees tax-free

Activate the option for tax-free payment of tips for employees.

Procedure for tax-free payment:
1. Set the tax-free payment of tips for employees under Admin: Store management > Stores > Edit > Settings > Tip.
2. Activate "Tip for employee tax-free" and set the switch to "Yes".

If the business owner has to pay tax on the tip given to him, the standard tax tip normal rate / 19% (in Germany) is entered.







2.3 Selecting tip levels

The tip levels determine which predefined tip amounts are displayed to the guest on the SIDES Pay payment terminal.
(Further information on activating the tipping function in the SIDES Pay terminal is available here: https://support.simplydelivery.de/portal/en/kb/articles/sides-pay-terminal-onreader-tipping).

Procedure for the tip levels:
1. Go to Admin: Store management > Stores > Edit > Settings > Tip.
2. Open the "Tip levels" field in the "Tip" area
3. Select one of the available options:
  1. 5%, 10%, 15% (Standard)
  2. 10%, 15%, 20%
4. Click on "Save".




2.4 Activate employee registration at the cash register

Activate employee registration at the checkout for all areas.

Procedure for employee registration:
1. Activate employee registration at the checkout for all areas under Admin: Store management > Stores > Edit > Settings > POS.
2. Activate the following employee logins and set the switch to "Yes":
  1. Employee login at the cash register for delivery, take away and counter sales:
  2. Employee login at the cash register for table sales:
  3. Automatically start time-tracking when employee logs into cash register:
  4. Automatically log out employee from cash register. The time for automatic sign-out can be set as required.




If the employee number is entered frequently, it is advisable to assign single-digit employee numbers where possible.

If the order is assigned to a driver, the tip is assigned to this driver.



3. Tip Payout

The tip can be paid to the employee during the day or before the cash register closing from the "Cash register info" or "Cash balance" view.

Procedure:
1. Open the "Cash register info" (under POS: Dashboard > Cash register info) or the "Cash balance" (under POS: Dashboard > Cash balance).





2. To pay out, click on the "Pay out" button under "Tips".




3. The required receipt is then displayed via the "Print" button and can then be printed out.




4. Tips not paid out by the time the cash register closes remain in the cash register.



4. Perform cash closing

If there are tips in the cash register closing that have not been assigned to an employee, the message "xx.xx in unassigned tips still need to be taxed" appears.




Clicking on this display causes a further display.
Note: An adjustment posting from 0 to 19% VAT (in Germany) is only made when you click on "Create correction invoice".





5. Cashbook entry

In the "Cashbook" (under Admin: Accounting > Cashbook), the income is shown as a total and the expenses for employee tips are shown individually.
The company tips are added together in the specified tax.





6. Employee tips

Employee tips can be viewed under Admin: Accounting > Employee payment overview.






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