Patriot Software's Blog

Tips vs. Auto Gratuities (aka Service Charges): Why It Matters for Payroll

If your employees earn money directly from customers—at a restaurant, salon, hotel, or bar—you already know how confusing tip reporting can be. The IRS draws a very specific line between tips and service charges (aka auto-gratuities), and the difference affects payroll taxes, employee reporting, and even year-end W-2s. Let’s break it down in plain English. […]

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How to Prorate Salary in 4 Steps

Hiring salaried employees can eliminate some of the guesswork out of wage calculations. Typically, an employee earning a salary receives the same amount each pay period. But, what happens when an employee takes an unpaid day of work? In these situations, you must know how to prorate salary.

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