Understanding Tip Reporting in Payroll For employers with tipped employees, how tips are entered into payroll matters just as much as the amounts themselves. Different types of tips—cash vs. credit card, paid vs. owed, qualified vs. nonqualified—are treated differently for tax reporting, wage calculations, and compliance purposes. The payroll entry options below represent specific “buckets”…
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(And Why It Matters in the 2026 Filing Season) As payroll regulations continue to evolve, the Internal Revenue Service issued guidance related to tax year 2025 that employers and employees are now encountering during the 2026 filing and reporting season. This guidance focuses on cash tip reporting and qualified overtime compensation, along with transition relief…
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The start of a new year brings more than fresh calendars and updated goals — it also marks one of the most important moments in the payroll cycle. Decisions and oversights made in January can quietly ripple through the entire year, affecting compliance, employee trust, and financial accuracy. January is when smart employers slow down…
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