The rule depend on the payrole whether the staff person is a tipped employee, and they vary according to location. Because tips, on average, make up around two-thirds of a waiter's or bartender's earnings and because there are some thousands of dollars of fine if you violate the the tipping laws so thats why there should be proper payrol system in restaurant's accounting.
First you have to categories the tipped employee.
A tip employee is an employee who regularly earn 30 dollar a month as a tip.this tip can be in the form of cash or credit card or through tip pool arrangment.
Second, you must correctly determine what counts as a tip:
A tip, or gratuity, is an amount of money voluntarily given by a customer in addition to the payment for the service received. The tip can be left in the form of cash or as an addition to a credit card payment. Tips are the property of staff. A service charge, such as a fee automatically added to a large group of customers, is a fixed, non-negotiable amount added to the bill and is not considered a tip; that service charge belongs to the restaurant.
Both employees and employers have legal obligations to report tips accurately and timely to each other and to the federal government.
Under Internal Revenue Service regulations, tipped employees must report to their employer all tips received that total at least $20 a month. These tips include cash, debit, credit and the value of non-monetary tips. Reported tips should include those received directly from customers as well as from other employees.
Tips must be reported to employers by the 10th day of the month following the month the tips were received. The report must include:
The employee's name, address and Social Security number
Employer's name and address
The month the tips were received
Total tips received
The IRS requires that employers ensure that the minimum total tip income reported by employees during any pay period equals at least 8 percent of the restaurant's total receipts for that pay period. Note that total receipts should not include amounts for take-out. Employers report quarterly through payroll.
If you pay your staff the full minimum wage, without use of a tip credit, then tip pooling is allowed between tipped (front-of-house staff like hostesses and waiters) and traditionally non-tipped (back-of-house staff like cooks) employees. All tips collected from directly tipped staff are combined into one large pool, which is then redistributed among a larger group of employees. The distributed amounts should correspond to the level of service or contact with customers. Employers and managers cannot participate in tip pools.
A tip credit allows employers to include gratuities in calculations of the minimum wage for tipped employees. Calculating and applying the allowed tip credit requires accurate accounting, and rules vary widely across the country
Federal vs. State vs. Local Requirements
The federal Fair Labor Standards Act outlines the minimum wage requirements nationally, which is $7.25 per hour with a maximum tip credit of $5.12. However, seven states require employees be paid the full state minimum wage without a tip credit, and several other states have their own minimum wage requirements. Additionally, many cities, such as San Francisco, have even more generous minimum wage requirements.