How does wage code 125 Taxed Service Charge work?

  • Modified on: Tue, 25 Jan, 2022 at 12:23 PM

You can divide Service Charge over several employees using a points system, entered per employee in wage code 125. In addition to based on points, you can also take hours worked into account in dividing the Service Charge. In this way, employees who have worked more also receive a larger share of the Service Charge.

During periodic payroll processing, you can enter the total amount of the Service Charge (under the Update button) with the option 'Divide Service Charge' and have Celery divide the total amount of the tip jar.

PLEASE NOTE: if you have chosen to have the Service Charge also divided on the basis of hours, you must also have entered all hours before clicking on the 'Divide' button.

If you first 'divide' the Service Charge and after that enter the (overtime) hours that should be included in the dividing, these hours will not be included. After all, you have already divided the Service Charge before you have added the hours. Only after you have clicked on 'Divide' after entering the hours, these hours will be included in the calculation.

If you always wish to include all hours in the dividing of the Service Charge, we recommend that you only enter the amount of the Service Charge as the last change after all other changes and hours have been entered, and only then enter the Service Charge as the last action. before clicking the 'divide' button.

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