Tips Statement Process

Ensuring Equitable Distribution and Compliance – A Step-by-Step Walkthrough for Employers Adapting to Recent Changes in Legislation

In the ever-evolving landscape of employment legislation, staying abreast of changes is crucial for businesses aiming to maintain fairness and compliance. With the recent enactment of the Employment (Allocation of Tips) Act 2023 in Ireland, a significant shift has occurred in how tips and gratuities are handled in the workplace. This legislation mandates that all credit card tips must be equitably shared among employees, requiring employers to issue a detailed "Tips Statement" to each recipient prior to payroll. In this article, we will explore the process and unveil how Alkimii, an innovative people management solution, has automated steps in the process, revolutionizing tip allocation and ensuring seamless compliance. 

Step 1: Setting Up the Tips Statement Letter (once off step)

• This step will only need to be completed once. Within HR Automation, open the document store and add a document.
• Add the document title as “Tips Statement”
• For the type select “Letter” and then select the “Tips” option.
• If you wish you can set up a KPI for “Tips Statement” and then select this from the dropdown list.

• Update the declaration to state the employee has “read and acknowledge the tips statement” or whatever variation you wish to use.
• Build out the letter as you would for a career path letter using the auto-populated fields
• As normal, save the document and proceed to create a form and then a pack. 

Step 2: Entering the Credit Card Tips in Actual

• The night team will now have an additional step to complete in their daily process. They must now enter the credit card tips for the site which will be available to them on the “Trial Balance Report”. This will appear as an additional line item within the Actuals screen in Revenue.

Step 3: Add the Payment in Week Details

• This step will be handled by the HR Manager. They will need to add the monetary value of tips to be allocated to the employee.
• Click “Add Payment” and select “Gratuities”.
• They would need to select a date period using the calendar function as their default setting will be the current week. Once the date period is selected, the total tips for that period will populate down the bottom of the modal.
• The tip value is still a manual calculation and will need to be entered by the HR Manager. Alkimii will not generate this figure for you. 
• You can select whether the tips have been calculated by “hours” or “value”
• Once satisfied with the entry, click “Add”.
• This entry will be time and date stamped with the Manager's name for further reference.

Step 4: Preparing for Payroll in the Week Costs

• Now it is time for payroll
• As per usual, the Payroll Processor downloads the timesheet audit report and reviews the data for any anomalies.
• The only difference appears when you go to generate the payroll export file. You will now see a checkbox appear. If ticked, this will automatically issue the tips statement to the employees. If left unticked, no letter will be issued.

Step 5: Approving the Tips Statement in HR Queue 

• The tips statement letter once issued and acknowledged by the employee will come back into the HR Queue for approval.
• Treat this like any other returned pack and approve it as normal.