INTRODUCTION

Many positions within JMH Companies are hospitality related and therefore employees in these positions are allowed by law to receive gratuities (tips) from customers. Tip reporting is now available for all hourly associates, except for Mahony's and Belladonna, in Paycom.


TIPPED ASSOCIATE POLICY

As defined by the Wage & Hour Division of the U.S. Department of Labor, “Tipped employees (Associates) are those who customarily and regularly receive more than $30 per month in tips.” You have the right to retain all the tips you receive, except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips.


Tip Credit: In compliance with the Fair Labor Standards Act, Premium Parking will take a tip credit toward its minimum wage obligation for tipped Associates equal to the difference between the paid hourly wage and the federal minimum wage.


Pursuant to Section 3(m) of the FLSA, as a tipped associate, you are provided the following information:

  • The amount of wages paid to you will be between $2.13 and $7.25 per hour
  • Premium Parking may not claim as a tip credit more than $5.12 per hour (the difference between the minimum required wage of $2.13 and the current minimum wage of $7.25)
  • Premium Parking may not claim as a tip credit more than the tips actually received by the tipped Associate
  • All tips received by tipped Associates are retained by those Associates unless there is an approved tip pooling arrangement restricted to those Associates who usually receive tips


The Internal Revenue Service (IRS) requires that you report all tips you receive and retain, including cash tips.  You must report your cash tips upon clock out at the end of each shift. It is the expectation of Premium Parking that you report all cash tips earned and failure to regularly do so may result in disciplinary action.  In addition, failure to report earned tips is against the law and if you choose to under-report your earnings, you may subject yourself to audits and fines from the IRS if it is determined that you willfully avoided payment of income taxes. Often the fines and interest are more than the original tax liability.

Reported cash tips will show on all pay stubs and W-2’s as verified income and will be included in verification of income and employment requests.


TIP REPORTING

It is in the best interest of the employee to report their tips as well so they will have an accurate record for reporting their personal income to the IRS. Accurate records of earnings will also help when using financial services and credit reporting bureaus. If total wages are under reported, an employee might not be able to secure a loan or make major purchases. Employees fill in the amount of tips they are 'taking home' from their shift regardless of any tip pooling or tip sharing policies in place.



HOW TO REPORT TIPS

If your location uses a point of sale system, your credit card and cash tips are reported through it. If your location does not have a point of sale system, you will use Paycom to report cash tips. Associates are required to report their cash tips when they are punching out each day.  


Associates must put the dollar amount of tips they received prior to punching out.  If no tips were received, you must check the "No Tip" box.



WEB TIME CLOCK

Time Management > Tipped Employees (Timezone)> Enter tip amount or check No Tips box > OUT (Day)




MOBILE APP

Time Management > Tipped Employees (Timezone)> Enter tip amount or check No Tips box > OUT (Day)






Employees fill in the amount of tips they are 'taking home' from their shift regardless of any tip pooling or tip sharing policies in place.


CONCLUSION

The information provided here pertains to federal law. State and/or local laws may supersede the information provided here.


To find out more information about minimum wage for tipped employees in the state you work in, visit https://www.dol.gov/whd/state/tipped.htm.


To find out more information about minimum wage for tipped employees in cities and counties/parishes you work in, visit http://laborcenter.berkeley.edu/minimum-wage-living-wage-resources/inventory-of-us-city-and-county-minimum-wage-ordinances.


If you have any questions, please contact hr@jmhcompanies.com.