Why Track Tips Manually?
For servers, bartenders, and hospitality staff, tips often make up the majority of income. While your POS system tracks credit card tips, cash tips are often self-reported. Keeping a personal logbook ensures you:
- Audit your paycheck: Ensure management isn't under-reporting or withholding your due tips.
- IRS Compliance: You are legally required to report all tip income (cash and card) to your employer if it exceeds $20/month.
- Income Proof: A consistent logbook helps verify income for renting apartments or getting loans.
Tip Credit & Minimum Wage
In many states, employers can pay a lower "tipped minimum wage" (e.g., $2.13/hr) as long as your tips bring you up to the standard minimum wage. Use this tracker to verify that your (Hourly Wage + Tips) / Hours never falls below the federal or state minimum.