■  Tip Record

The best Apps to keep track of your financial records on the Market:

TipSee - Mobile Tip Tracker

TipSee is an all inclusive tip tracking app for anyone who gets tips daily or enough times throughout the year that you would like to keep a record. The app is user friendly and easy to learn. 
All tips for the month are displayed on a calendar page so you can see a summary at a glance.

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XpTracker - Mobile Expense Tracker

XpTracker is an all inclusive Expense tracking app for anyone who makes many purchase throughout the week and can not seem to remember where all your money is going. 

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Tip Record

TipSee, the mobile tip tracking app, will record your daily tips and can provide a complete history in an excel spread sheet. Your complete record of tips can be view on calendar pages or on an excel spread sheet. The calendar will show Tips and the rate/hour. If you get wages as well, the calendar will display tips plus wages and your hourly rated based on tips plus wages.

If you are a waiter or waitress, the IRS requires you to keep a record of your tips. The record needs to include tips you receive from:

  • your customers in cash;
  • other tipped employees because of a "tip-sharing" arrangement; and
  • your customers who pay by credit card.

According to the rules, your tip records need to clearly establish the tips you received. That's why a timely, day-to-day record is so important. TipSee can facilitate this record keeping.
When you receive a tip but pay part of it to someone else (for example, a bartender), you should note if it was to the bartender, busser, etc, in your tip record along with the amount you paid him/her. You should keep your record updated on a day-to-day basis to make sure of its accuracy.

In order to comply with IRS rules, you need to let your employer know the total amount of tips you receive. This reporting should be done in writing within the 10-day period following the end of the month in which you receive the tips (sometimes the due date is extended a day or so if the last day of the 10-day period is on a weekend or legal holiday).
Once you make the report to your employer, he/she adds the amount to your regular wages and uses the total to figure how much income tax, Social Security tax and Medicare tax to withhold from your regular paycheck.

Special rules apply to tips you received but didn't, for one reason or another, report to your employer. If such tips total $20 or more in any given month while working for one employer, you will need to figure your own Social Security and Medicare taxes for them. These taxes are computed and paid with your tax return. Keep in mind that the IRS can also charge a penalty for tips that aren't reported to an employer.

Based on a percentage of your sales, eg 8% of sales. Using this method you must keep track of your daily sales revenue.

Beginning in 2014, the IRS is cracking down on how restaurant owners pay out automatic tips – i.e. the typical 18% charged for parties of 6 or more. Going forward, these tips must be classified as service charges that are taxable as regular wages and subject to payroll tax withholding (aka more paperwork), rather than pooled into the tip cash servers divide at the end of their shift (which has been common practice until now).

Though the policy isn't a new one, having been issued in June 2012, the implementation was delayed until 2014 to give restaurants time to comply. And rather than deal with the paperwork involved, some restaurateurs are choosing to ditch the mandatory tip altogether.

Incorrect handling of auto-gratuities could jeopardize restaurant owners' ability to take the tip credit, which allows owners to pay their tipped staff less than the minimum wage. For instance, in New York, tipped servers can be paid just $5 an hour -- $3 less than the state's minimum wage.