How do I configure wage basis rules for tips?

Credit card tips aren't subject to disposable income. If your employees earn credit card tips:

  1. Define your credit card tip elements using the Tips Supplemental secondary classification.

  2. Define the appropriate wage basis rules to exclude those earnings from disposable income for the applicable states.

Alternatively, you can create a user-defined Supplemental Earning secondary classification and define the wage basis rules as appropriate.

Note:

If you have surcharge and service charge tips, use the Tips Regular secondary classification, as these earnings are subject to disposable income. You don't need to configure the wage basis rules.