How does wage code 125, Taxed Service Charge, work?
Wage code 125 lets you share a service charge (money from customers that is shared among staff, like a tip jar) between several employees. Celery divides the total for you.
How the division works
- Points: In wage code 125, you give each employee a number of points. Employees with more points get a bigger share.
- Hours (optional): You can also take hours worked into account. Employees who worked more hours then get a bigger share.
How to divide the service charge
- Open the payroll run.
- Click Update and choose Divide Service Charge.
- Enter the total service charge amount.
- Click Divide. Celery shares the amount between the employees.
Important: enter all hours first
If you divide by hours, all hours must be entered before you click Divide. Celery only counts the hours that are in the payroll run at that moment.
For example: you click Divide and then add overtime hours. Those overtime hours are not counted. To include them, click Divide again.
Tip: Make the service charge your last step. Enter all other changes and hours first. Then enter the service charge amount and click Divide.