1-800-970-GRATUITYoffice@gratsync.com100% Automated Gratuity Management Solution       - Easy, Secure, Precise -

Gratuity payroll system

Streamline paying out tips through payroll or cash/cards payments. Tip records are maintained for three to six years thru our digital archive. The most precise, systematic solution for calculating tips.  insurance for your business operation against any gratuity related errors. protection from potential future audits, lawsuits and liability.

payroll

Streamline paying out tips to your employees through payroll or cash/cards payments.

Our Patent pending GratCash™ Module will seamlessly allow you to pay certain employees such as waiters, in cash at the end of the shift while the remaining staff will either be paid next day in cash as well, or by check – with their hourly wages.

You will be able to integrate all or part of Gratuities into your payroll system without any hassle.

Even Cash payments will be reflected automatically in your reports giving you ability to accurately reflect paid Gratuities in the tipped employee’s W2 Forms.

cash/cards

With Tip to Cards, restaurant employers now have the ability to direct deposit a tipped employee’s tip income directly to the employee’s personal card. GratSync’s restaurant clients can now eliminate cash tenders or separate checks for tip income by simply depositing the tip income to the employee’s card.

self cash out

Our Patent pending GratCash™ Module will seamlessly allow you to pay certain employees such as waiters, in cash, at the end of the shift while remaining staff will either be paid next day in cash as well, or by check – along with their hourly wages.

GratCash™ module can be applied or turned off at any time and in combination with all other modules.

Additional benefits of using GratCash™ Module with all features:

It eliminates Cash exchanges between employees clocked-in on the floor, this module further eliminates possible liability issues involved with direct money exchange or short exchange/distribution between employees involved in tip-out calculation.

records

Tip records are maintained for 3-6 years thru GratSync’s™ digital archive at no additional cost to the establishment or the tipped employee.

Gratuity Solutions protects the restaurant establishment and all tipped employees by accurately managing tip receipts, fairly allocating and distributing tips to the establishment’s employees and securely archiving your records while completely eliminating the restaurant’s liability with regard to same.

With Gratuity Solutions, a restaurant can retrieve detailed electronic reports for all tip distributions automatically every single day. In fact, the restaurant, its manager and the employees will also be able to view specific distributions from each shift in real time on their own secure web portal or smart phone.

In addition to the computerized calculation and reports, Gratuity Solutions also provides the restaurant owner with the security of storing the daily records as protection from potential future audits, lawsuits and liability.

archive

Gratuity Solutions protects the restaurant and all tipped employees by accurately managing tip receipts, fairly allocating and distributing tips to the establishment’s employees and securely archiving your records while completely eliminating the restaurant’s liability.

With Gratuity Solutions, a restaurant can retrieve detailed electronic reports for all tip distributions automatically every single day. In fact, the restaurant, its manager and the employees will also be able to view specific distributions from each shift in real time on their own secure web portal or smart phone.

In addition to the computerized calculation and reports, Gratuity Solutions also provides the restaurant owner with the security of storing the daily records as protection from potential future audits, lawsuits and liability.

precise

The most precise, systematic solution for calculating tips accurately.

GratSync integrates seamlessly with an organization’s existing Point of Sale (POS) system, therefore eliminating any manual input.

By calculating the tip distribution electronically, the restaurant owner and the tipped employees are protected from inaccurate tip distribution, whether accidental or not.

But most importantly, the program eliminates the antiquated and tedious daily calculation system that is prone to error. By utilizing a secure tip distribution system, both managers and employees can concentrate solely on the quality of their services, thereby providing the best atmosphere for the restaurant patrons and adding to the profits of not only the employees, but also the restaurant owner.

insurance

insurance for your business operation against any gratuity related calculation and allocation errors.

Gratuity Solutions protects the restaurant and its tipped employees by accurately managing tip receipts, fairly allocating and distributing tips to the establishment’s employees and securely archiving your records while completely eliminating the restaurant’s liability.

By calculating the tip distribution electronically, the restaurant owner and the tipped employees are protected from inaccurate tip distribution, whether accidental or not.

any

GratSync™ is the first and only automated software system that automatically calculates and distributes the tips while it completely eliminates potential human error, guaranteeing accurate, precise results every time. • Eliminate the antiquated and tedious daily calculation system that is prone to error. • Avoid manual entry of new employees • Avert human errors, miscalculations, theft or negligent management, loss of records. • Prevent confrontation with your tipped employees • Access stored tip distribution daily records as protection from potential future audits, lawsuits and liability.

Your management can concentrate on the quality of services, thereby providing the best atmosphere, for the restaurant patrons and adding to the profits for the restaurant owner, as well as to the employees.

protection

protection from potential future audits, lawsuits and liability.

Gratuity Solutions is here to remove the establishment’s daunting daily task of calculating and allocating tips and cover the Restaurant and your employees with a precise, secured and insured method of distribution and management for all of your tipped employees.

By calculating the tip distribution electronically, the restaurant owner and the tipped employees are protected from inaccurate tip distribution, whether accidental or not.

liability

The question remains: Are these tips being properly distributed, allocated and accounted for?

Unfortunately, the lawsuits have shown that this is an industry that is fraught with indiscretions at various levels. Mistakes in fair and accurate tip distribution are not uncommon; whether intentional or accidental, whether done with discriminatory intent or merely a scrivener’s error the end result is withholding earned money from hard working employees.

With Gratsync™, each entity will receive detailed electronic reports for all tip distributions automatically every single day. In fact, the restaurant, its manager and the employees will also be able to view their own specific distributions from each shift in real time. By calculating tip distribution electronically, the restaurant owner and the tipped employees are protected from inaccurate tip distribution, whether it is accidental or not.

GratSync™ enables customization of a tip distribution schedule according to policies selected by each restaurant. Each restaurant will be able to completely eliminate the time consuming and error ridden manual calculations and also receive detailed electronic reports for all tip distributions automatically at the end of every single day.

How does it work?

how does it work?

Complete 30 minute online wizard!

Our Integrations Specialist will assist you with completing a few questions in our simple and intuitive online wizard.
During this short interview you will be prompted to install our Patent Pending GratSync client.
At this time you will be able to select and customize a tip distribution schedule according to your own rules and tip distribution policies as presently used in your establishment.

That’s it! You can now sit back and relax, let the GratShare system do ALL the work for you and your tipped employees.
Completely eliminate the time consuming and error ridden manual calculations and receive detailed electronic reports for all tip distributions automatically at the end of every single day.

Complete 30 minute online wizard! Our Integrations Specialist will assist you with completing a few questions in our simple and intuitive online wizard. More

how does it work?

Complete 30 minute online wizard!

Our Integrations Specialist will assist you with completing a few questions in our simple and intuitive online wizard.
During this short interview you will be prompted to install our Patent Pending GratSync client.
At this time you will be able to select and customize a tip distribution schedule according to your own rules and tip distribution policies as presently used in your establishment.

That’s it! You can now sit back and relax, let the GratShare system do ALL the work for you and your tipped employees.
Completely eliminate the time consuming and error ridden manual calculations and receive detailed electronic reports for all tip distributions automatically at the end of every single day.

Easy

easy

By calculating the tip distribution electronically, the restaurant owner and the tipped employees are protected from inaccurate tip distribution, whether accidental or not.

But most importantly, the program eliminates the antiquated and tedious daily calculation system that is prone to error. By utilizing a secure tip distribution system, both managers and employees can concentrate solely on the quality of their services, thereby providing the best atmosphere for the restaurant patrons and adding to the profits of not only the employees, but also the restaurant owner.

GratSync™ completely eliminates:

(1) Spreadsheets full of errors due to a manual input of data

(2) Auditing issues, due to recovery of all gratuity data

(3) Time loss to management and accounting

(4) Unhappy tipped employees, by the transparency and accuracy of the data transfer from the real source (the POS)

No more manual entry of:

• new employees

• hours spent in various tip pools

• daily tip records

You will avoid:

• human errors

• miscalculations

• theft or negligent management

• loss of records

• confrontation with tipped employees

GratSync integrates seamlessly with an organization’s existing Point of Sale (POS) system, therefore eliminating any manual input. More

easy

By calculating the tip distribution electronically, the restaurant owner and the tipped employees are protected from inaccurate tip distribution, whether accidental or not.

But most importantly, the program eliminates the antiquated and tedious daily calculation system that is prone to error. By utilizing a secure tip distribution system, both managers and employees can concentrate solely on the quality of their services, thereby providing the best atmosphere for the restaurant patrons and adding to the profits of not only the employees, but also the restaurant owner.

GratSync™ completely eliminates:

(1) Spreadsheets full of errors due to a manual input of data

(2) Auditing issues, due to recovery of all gratuity data

(3) Time loss to management and accounting

(4) Unhappy tipped employees, by the transparency and accuracy of the data transfer from the real source (the POS)

No more manual entry of:

• new employees

• hours spent in various tip pools

• daily tip records

You will avoid:

• human errors

• miscalculations

• theft or negligent management

• loss of records

• confrontation with tipped employees

Secure

secure

AWS Infrastructure Security

AWS operates the cloud infrastructure that you use to provision a variety of basic computing resources such as processing and storage. The AWS infrastructure includes the facilities, network, and hardware as well as some operational software (e.g., host OS, virtualization software, etc.) that support the provisioning and use of these resources. Our customers can be assured that their data is kept in a most secure computing infrastructure in the world.

The IT infrastructure that AWS provides to its customers is designed and managed in alignment with best security practices and a variety of IT security standards, including:

• SOC 1/SSAE 16/ISAE 3402 (formerly SAS 70 Type II)

• SOC 2

• FISMA, DIACAP, and FedRAMP

• PCI DSS Level 1

• ISO 27001

• ITAR

• FIPS 140-2

• HIPAA

• Cloud Security Alliance (CSA)

• Motion Picture Association of America (MPAA)

More information is on AWS website.

Our software as a service (SaaS) platform is hosted in state of the art Amazon AWS facilities along with Federal government agencies. Gratuity Solutions LLC does not use or transmit any sensitive employee or company’s information. More

secure

AWS Infrastructure Security

AWS operates the cloud infrastructure that you use to provision a variety of basic computing resources such as processing and storage. The AWS infrastructure includes the facilities, network, and hardware as well as some operational software (e.g., host OS, virtualization software, etc.) that support the provisioning and use of these resources. Our customers can be assured that their data is kept in a most secure computing infrastructure in the world.

The IT infrastructure that AWS provides to its customers is designed and managed in alignment with best security practices and a variety of IT security standards, including:

• SOC 1/SSAE 16/ISAE 3402 (formerly SAS 70 Type II)

• SOC 2

• FISMA, DIACAP, and FedRAMP

• PCI DSS Level 1

• ISO 27001

• ITAR

• FIPS 140-2

• HIPAA

• Cloud Security Alliance (CSA)

• Motion Picture Association of America (MPAA)

More information is on AWS website.

Precise

precise

GratSync integrates seamlessly with an organization’s existing Point of Sale (POS) system, therefore eliminating any manual input.

By calculating the tip distribution electronically, the restaurant owner and the tipped employees are protected from inaccurate tip distribution, whether accidental or not.

But most importantly, the program eliminates the antiquated and tedious daily calculation system that is prone to error. By utilizing a secure tip distribution system, both managers and employees can concentrate solely on the quality of their services, thereby providing the best atmosphere for the restaurant patrons and adding to the profits of not only the employees, but also the restaurant owner.

GratSync is the most precise, systematic solution for calculating tips. By applying complex calculations where multiple factors are taken in consideration, the system automatically implements multiple “checks and balances” before reporting and paying out to prevent any miscalculations. More

precise

GratSync integrates seamlessly with an organization’s existing Point of Sale (POS) system, therefore eliminating any manual input.

By calculating the tip distribution electronically, the restaurant owner and the tipped employees are protected from inaccurate tip distribution, whether accidental or not.

But most importantly, the program eliminates the antiquated and tedious daily calculation system that is prone to error. By utilizing a secure tip distribution system, both managers and employees can concentrate solely on the quality of their services, thereby providing the best atmosphere for the restaurant patrons and adding to the profits of not only the employees, but also the restaurant owner.

Price

Our pricing structure features a pay-as-you-go model reflecting full coverage for tipped employees. This includes 24/7 online access, data storage, support and gratuity management liability insurance. Or you may choose a fixed cost with access to select features of services. More

Bottom Line

bottom line

The problem of tip allocation and proper reporting is an issue that continues to plague the restaurant industry throughout the United States, but now a solution to the problem exists.

According to the National Restaurant Association’s staff writers, the employer is “required [by the IRS] to gather employees’ tip reports” and the employer “must report employees’ tips to the IRS and withhold taxes.”

However, there is a current problem throughout the country with regard to tip/gratuity distribution and it appears various Labor Departments throughout the U.S., in particular that of New York, have recognized the problem and are enacting various new rules and regulations to address the problem in order to protect the employee. Most recently, there have been numerous lawsuits throughout the United States on behalf of employees against restaurant employers regarding improper tip distribution and violation of labor laws, including minimum wage standards and overtime pay.

GratSync’s Saas platform manages employee gratuities, or tips, on a daily basis, saving management’s time, preventing exposure to liability, and eliminating doubt among employees, leading to more positive morale in the workplace. More

bottom line

The problem of tip allocation and proper reporting is an issue that continues to plague the restaurant industry throughout the United States, but now a solution to the problem exists.

According to the National Restaurant Association’s staff writers, the employer is “required [by the IRS] to gather employees’ tip reports” and the employer “must report employees’ tips to the IRS and withhold taxes.”

However, there is a current problem throughout the country with regard to tip/gratuity distribution and it appears various Labor Departments throughout the U.S., in particular that of New York, have recognized the problem and are enacting various new rules and regulations to address the problem in order to protect the employee. Most recently, there have been numerous lawsuits throughout the United States on behalf of employees against restaurant employers regarding improper tip distribution and violation of labor laws, including minimum wage standards and overtime pay.

A few of our Happy Customers

Pricing Plans

Pricing plans vary from State to State, please let us know where do you operate from. Please contact us for detailed information.

News

ABOLISH TIPS: NOT SO FAST!! February 15, 2017

NAPLES, FLORIDA, February 15, 2017 /By: Carlo F. Zampogna, Gratuity Solutions- Director of Business Development/ — As you may have read or heard in the news over the last 24 months, a few restaurants and restaurant chains across the country have started a “movement” to completely abolish tipping. These restaurants favored paying wait staff a higher base salary or instituting service charges. But the question remained, would this experiment work or was this just another short lived trend within the restaurant industry? The results may surprise you. More..

Gratuity Solutions Solves TIP Management by Florida Restaurant & Lodging Magazine  April 07, 2016

April 07, 2016 /Restaurant & Lodging Magazine/ — Picture yourself finishing a meal at a Restaurant. The atmosphere was relaxing, the food was delicious and service was excellent. When you pay your bill, you leave a tip. But who is entitled to that tip? Who is responsible for getting the tip in the right hands at then end of the night? Just because the only face you may have seen was the waiter or waitress, doesn’t mean he or she was the only one serving you. More..

“Service Charges”
A New Problem for the Restaurant Industry that is solved by Gratuity Solutions 
July 29, 2015

There is big story brewing throughout the hospitality industry, especially in restaurants and nightclubs, related to Service Charges and it may change how our Country has historically dealt with TIPS. The Internal Revenue Service reminds employers that automatic gratuities are service charges, not tips. Employers should make sure they know the difference and how they report each to the IRS. What are tips? Tips are discretionary (optional or extra) payments determined by a customer that employees receive from customers. More..

Gratuity Solutions, the nation’s leader of automated gratuity and tip distributions, today announced Tip to Cards is now available in the Washington, D.C. metropolitan area. November 25, 2014

WASHINGTON DC, Nov. 25, 2014 /PRNewswire/ — Gratuity Solutions, the nation’s leader of automated gratuity and tip distributions, today announced Tip to Cards is now available in the Washington, D.C. metropolitan area. With Tip to Cards, restaurant employers now have the ability to direct deposit a tipped employee’s tip income directly to the employee’s personal card. GratSync’s restaurant clients can now eliminate cash tenders or separate checks for tip income by simply depositing the tip income to the employee’s card. More..

New IRS Tax Rule Impacts ALL U.S. Restaurants (beginning 1/1/14) January 17, 2014

On January 1st, a new IRS rule defines mandatory tips as a “service charge” and required that they be put on the waiter’s paycheck as taxable income. More..

New IRS Tax Rule Impacts ALL U.S. Restaurants (beginning 1/1/14) January 17, 2014

On January 1st, a new IRS rule defines mandatory tips as a “service charge” and required that they be put on the waiter’s paycheck as taxable income.

Topic 761 – Tips – Withholding and Reporting

Employees who receive cash tips of $20 or more in a calendar month while working for you, are required to report to you the total amount of tips they receive. The employees must give you written reports by the tenth of the following month. Employees who receive tips of less than $20 in a calendar month are not required to report their tips to you but must report these amounts as income on their tax returns and pay taxes, if any.

Cash tips include tips received directly from customers, tips from other employees under any tip-sharing arrangement, and charged tips (e.g., credit and debit card charges) that you distribute to the employee. Both directly and indirectly tipped employees must report tips received to their employer.

Service charges added to a bill or fixed by the employer that the customer must pay, when paid to an employee, will not constitute a tip but rather constitute non-tip wages. These non-tip wages are subject to social security tax, Medicare tax, and federal income tax withholding. In addition, the employer cannot use these non-tip wages when computing the credit available to employers under section 45B of the Internal Revenue Code, because these amounts are not “tips.” Common examples of service charges (sometimes called “auto-gratuities”) in service industries are:

Large Party Charge (restaurant),

Bottle Service Charge (restaurant and night-club),

Room Service Charge (hotel and resort),

Contracted Luggage Assistance Charge (hotel and resort), and

Mandated Delivery Charge (pizza or other retail deliveries)

Employees can use Form 4070A, Employee’s Daily Record of Tips, to keep a daily record of their tips, and Form 4070, Employee’s Report of Tips to Employer, to report their tips to you. Both forms are in Publication 1244 (PDF), Employee’s Daily Record of Tips and Report to Employer. You may also provide other means for your employees to report tips to you, for example, a system for electronic tip reporting by employees.

When you receive the tip report from your employee, use it to figure the amount of social security, Medicare, and income taxes to withhold for the pay period on both wages and reported tips. You are responsible for paying the employer’s portion of the social security and Medicare taxes. You must collect the employee’s portion of the social security and Medicare taxes and the federal income taxes.

Beginning January 1, 2013, Additional Medicare Tax applies to an individual’s Medicare wages that exceed a threshold amount based on the taxpayer’s filing status. Employers are responsible for withholding the 0.9% Additional Medicare Tax on an individual’s wages paid in excess of $200,000 in a calendar year, without regard to filing status. An employer is required to begin withholding Additional Medicare Tax in the pay period in which it pays wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. There is no employer match for Additional Medicare Tax. For more information on the Additional Medicare Tax, see our questions and answers.

You collect these taxes from the wages you pay your employee, or from funds the employee gives you. If you don’t have enough money from the employee’s wages and funds your employee gives you, withhold taxes in the following order:

Social security and Medicare taxes on the employee’s wages,

Federal income taxes on the employee’s wages,

State and local taxes imposed on the employee’s wages,

Social security and Medicare taxes on the employee’s reported tips, and

Federal income taxes on the employee’s reported tips

For purposes of these ordering rules, the rules for withholding an employee’s share of Medicare tax on tips also apply to withholding Additional Medicare Tax on tips.

Withhold any remaining unpaid federal income taxes from the employee’s next paycheck, up to the close of the calendar year. However, if you cannot collect all of the employee’s social security and Medicare taxes on tips by the 10th day of the month following the month in which your employee reported the tips, you do not have to collect the taxes. Show the uncollected amount as an adjustment on your employment tax return (e.g., Form 941 (PDF), Employer’s QUARTERLY Federal Tax Return). Also, be sure to report the uncollected social security and Medicare taxes in the appropriate box on the employee’s Form W-2 (PDF), Wage and Tax Statement, but do not show any uncollected Additional Medicare Tax on Form W-2. You may want to inform your tipped employees that if all the federal income taxes and Additional Medicare Tax on their wages and tips are not collected by the end of the year, employees may be subject to a penalty for underpayment of estimated taxes.

When preparing an employee’s Form W-2, include wages, tips and other compensation in the box labeled “Wages, tips, other compensation.” Include Medicare wages and tips, and social security tips in their respective boxes. When figuring the employer’s liability for federal unemployment tax, add the reported tips to the employee’s wages.

If you operate a large food or beverage establishment, you must file Form 8027 (PDF), Employer’s Annual Information Return of Tip Income and Allocated Tips, for each calendar year, and may be required to allocate tips to your employees. You operate a large food or beverage establishment if tipping is customary, food or beverages are provided for consumption on the premises, and you normally employ more than ten people who work more than 80 hours on a typical business day. If you have more than one large food or beverage establishment, you must file a separate Form 8027 for each establishment. Form 8027 is due on the last day of February of the next year (or March 31 if you are filing electronically). If you meet the criteria for filing Form 8027, but do not file, the law provides for penalties for each failure to timely file a correct information return, including failure to file electronically, if required.

If the total tips reported by all employees at your large food or beverage establishment are less than 8 percent of your gross receipts (or a lower rate approved by the IRS), you must allocate the difference among the employees who received tips. The allocation may be based on each employee’s share of gross receipts or share of total hours worked, or on a written agreement between you and your employees. You are required to report the amount allocated on Form W-2 in the box labeled “Allocated Tips” for each employee to whom tips were allocated. Penalties may be imposed for both failing to file and failing to furnish a correct Form W-2 for each form on which you fail to include this required information. Do not withhold income, social security or Medicare taxes on allocated tips, since these amounts have not been reported to you by your employee.

Whether or not you are required to allocate tips, your employees must continue to report all tips to you, and you must use the amounts they report to figure payroll taxes.

Employers may participate in the Tip Rate Determination and Education Program. The program primarily consists of voluntary agreements developed to improve tip income reporting by helping taxpayers to understand and meet their tip reporting responsibilities. These voluntary compliance agreements offer many benefits for the employer and the employee. Two of the agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the Gaming (casino) industry. To get more information about GITCA, TRDA, or TRAC agreements, access the IRS website at www.irs.gov and search for Market Segment Understanding (MSU) agreements: search for keyword “MSU tips.”

For more information on employer responsibilities, refer to Publication 15, (Circular E), Employer’s Tax Guide. For more information on employee responsibilities, refer to Publication 531, Reporting Tip Income, and Reporting Tip Income – The Jill and Jason Show on the IRS Video Portal. Also see Rev. Rul. 2012-18, 2012-26 I.R.B. 1032, at http://www.irs.gov/irb/2012-26_IRB/ar07.html. This revenue ruling provides guidance for employers and employees in a question and answer format regarding social security and Medicare taxes imposed on tips, including information on the difference between tips and service charges, the reporting of the employer share of social security and Medicare taxes under section 3121(q), and the section 45B credit.

Source: Internal Revenue Service Topic 761 – Tips – Withholding and Reporting

Page Last Reviewed or Updated: January 08, 2014

http://www.irs.gov/taxtopics/tc761.html

“Service Charges”
A New Problem for the Restaurant Industry that is solved by Gratuity Solutions 
July 29, 2015

There is big story brewing throughout the hospitality industry, especially in restaurants and nightclubs, related to Service Charges and it may change how our Country has historically dealt with TIPS. The Internal Revenue Service reminds employers that automatic gratuities are service charges, not tips. Employers should make sure they know the difference and how they report each to the IRS. What are tips? Tips are discretionary (optional or extra) payments determined by a customer that employees receive from customers.

Earlier this year, the IRS published: http://www.irs.gov/taxtopics/tc761.html, which in pertinent part stated as follows: “Service charges added to a bill or fixed by the employer that the customer must pay, when paid to an employee, will not constitute a tip but rather constitute non-tip wages. These non-tip wages are subject to Social Security tax, Medicare tax and federal income tax withholding. In addition, the employer cannot use these non-tip wages when computing the credit available to employers under section 45B of the Internal Revenue Code, because these amounts are not tips. Common examples of service charges (sometimes called auto-gratuities) in service industries are: Large Party Charge (restaurant), Bottle Service Charge (restaurant and night-club); Room Service Charge (hotel and resort); Contracted Luggage Assistance Charge (hotel and resort), and Mandated Delivery Charge (pizza or other retail deliveries).” Generally, service charges are reported as non-tip wages paid to the employee. Some employers keep a portion of the service charges. Only the amounts distributed to employees are non-tip wages.

In the current market, fine dining restaurants and high end nightclubs that are generating high revenues and accordingly a high amount of Service Charges are able to appropriately distribute all service charges to all involved employees and avoiding strict DOL regulations designed to handle TIPS only (see http://www.dol.gov/whd/regs/compliance/whdfs15.htm) and our Company’s solution

Facts about Service Charges:

1. By the recent IRS ruling, service charges are FEES for services rendered and a gross receipt tax must be paid (while the customer pays for it, owner is obligated to collect and report it.)

2. A Service FEE can be anywhere from 15% to 25% and it is mandatory.

3. Service charges can be distributed to front of the house (Servers, Bartenders, etc.) as well as the back of the house (i.e. Cooks and dishwashers).

4. The customer still has an option to leave additional money (TIPS) on top of the service charge, which creates additional administration hurdle for owners in allocating, separating, calculating, distributing, and reporting Service charges along with regular TIPS.

5. Service charges are usually considered non-tip wages that should be entirely segregated from tip income.

6. Employers who distribute service charges, non-tip wages, to employees should treat them the same as regular wages for tax withholding.

Our Company’s GratShare solution does all of this for restaurant establishments automatically!

Our GratShare system has the ability to provide establishments with the specific information related to each employee’s income as it relates to Tip and Service charges separately. GratShare obtains the necessary information directly from the establishment’s POS to ensure accurate calculation and allocation of tip income and direct income from service charges separately without commingling each distinct type of income. This accurate separation of income provides the Employer and employee the additional level of compliance with respect to the regulations governing each type of income.

ABOLISH TIPS: NOT SO FAST!! By: Carlo F. Zampogna, Gratuity Solutions- Director of Business Development

NAPLES, FLORIDA, February 15, 2017 /Restaurant & Lodging Magazine/ — As you may have read or heard in the news over the last 24 months, a few restaurants and restaurant chains across the country have started a “movement” to completely abolish tipping. These restaurants favored paying wait staff a higher base salary or instituting service charges. But the question remained, would this experiment work or was this just another short lived trend within the restaurant industry? The results may surprise you.

Some restaurants and eateries felt that banning tips would allow the restaurant to save the time and money expended in tip calculating and distributing, as well as redress a perceived pay imbalance between tipped employees (servers, bartenders, food runners, bussers) and hourly waged employees like cooks. Other restaurants thought that providing a higher base salary would increase employee retention and thereby minimize the costs associated with hiring and training newer staff.

However, as many restaurant chains and individually owned eateries across the country soon learned, the shift toward higher hourly wages over tips was not well received. In fact, the biggest issue that restaurants experienced was an increase in turnover, the very problem they were trying to remedy in the first place. Many employees felt the financial impact, and noticed that they were not receiving a high enough wage after gratuities were eliminated. Other restaurants reported increasing menu prices (some as much as 40%) to offset the increased costs of employee salaries, which was not well received by patrons. In other words, previously tipped staff felt they earned less and patrons felt the increase in prices were too high.

If the staff and patrons are unhappy, then what is the motivation behind removing tips from the restaurant industry?

The issue is not the customary practice of tipping itself, but rather (1) the mismanagement or misappropriation of tips and (2) the time and money expended in the management of each restaurant’s tip calculation and distribution system. One of our clients estimated that each of its 1,200 nationwide restaurants spent a minimum of one hour every night calculating and distributing tips to their restaurant staff. On an annual basis, that came out to approximately $6 Million Dollars in tip management expenses!

Gratuity Solutions developed the first and only fully automated “cloud based” software system that calculates, allocates and distributes a restaurant’s tailored tip distribution schedule, and management can allocate and pay out that tip income immediately.

The Solution may be deployed with various POS systems and removes the daily task of manual calculation, allocation and proper tip distribution and further protects the restaurant and its employees with a precise, secured and insured method of distribution and management of tips for the restaurant’s tipped employees. By implementing the Gratuity Solution software, restaurants and their managers can save MILLIONS by eliminating the daily time consuming exercise, eliminating the liability associated therewith and also receive detailed electronic reports for all tip distributions automatically at the end of every single day. Management and tipped employees will be able to concentrate solely on the quality of their services, allowing them to provide the best atmosphere for the restaurant patrons and adding to the profits of not only the employees, but also the restaurant owners.

Gratuity Solutions is a Company that specializes in the technological improvement of the payment of tips and tip related income, including Tips to Paycard, and the integration between Point of Sale systems and the payroll payment methods and related platforms. You can learn more at http://gratuitysolutions.com/

Source: Florida Restaurant & Lodging Magazine

https://issuu.com/floridarestaurantandlodgingmagazine/docs/21-04_final_16_winter_frla_proof_4— Article is on Page 29.

Gratuity Solutions, the nation’s leader of automated gratuity and tip distributions, today announced Tip to Cards is now available in the Washington, D.C. metropolitan area. November 25, 2014

WASHINGTON DC, Nov. 25, 2014 /PRNewswire/ — Gratuity Solutions, the nation’s leader of automated gratuity and tip distributions, today announced Tip to Cards is now available in the Washington, D.C. metropolitan area. With Tip to Cards, restaurant employers now have the ability to direct deposit a tipped employee’s tip income directly to the employee’s personal card. GratSync’s restaurant clients can now eliminate cash tenders or separate checks for tip income by simply depositing the tip income to the employee’s card.

Gratuity Solutions’ flagship product GratSync is the first and only fully automated software system that calculates a restaurant’s tip distribution through integration with their POS system. With Tips to Card, GratSync’s automated tip calculation and allocation services are further enhanced. The service based SaaS company whose primary goal is to service the hospitality/restaurant industry streamlines the calculation, allocation and distribution of gratuity and tip related income. The Tips to Card solution was originally launched in Cheff Geoff’s Washington D.C. and is now available throughout the rest of the country.

“We are a company focused on restaurant tip management and payment methods, and by using GratSync the convenience and benefit that our Restaurant establishments enjoy today is just the beginning of the value we can deliver as a company. We originally solved the problem of manual tip calculation, thereby eliminating human errors, and now we have added another layer of efficiency and time savings to a restaurant’s management duties to its employees.” said Carlo F. Zampogna, Chief Operations Officer of Gratuity Solutions. “We overcame a significant industry obstacle by automating the tip calculation and distribution process and we will continue to provide value added opportunities to the restaurateurs, their managers and their employees and GratSync Tips to Cards is just another benefit to our users.”

Gratuity Solutions Solves TIP Management by Florida Restaurant & Lodging Magazine  April 07, 2016

April 07, 2016 /Florida Restaurant & Lodging Magazine/ — Picture yourself finishing a meal at a Restaurant. The atmosphere was relaxing, the food was delicious and service was excellent. When you pay your bill, you leave a tip. But who is entitled to that tip? Who is responsible for getting the tip in the right hands at then end of the night? Just because the only face you may have seen was the waiter or waitress, doesn’t mean he or she was the only one serving you.

TIPS have been a part of the history of the restaurant culture in America since its inception. They are given in appreciation of the employee’s service and remain a standard in America. Many individuals have made a professional careers of being a tipped employee, server, bartender or other tipped staff member, in the hospitality industry and the income that they are able to bring home is one that is well above the federal minimum wage standard.

Calculating, recording and disbursing tip income can be quite a challenging task, particularly at the end of long night during a busy season. A minor mathematical error can lead to significant liability for restaurant owners. Even worse, intentional miscalculations, unknown by the owner, can also lead to devastating consequences. Is there a better way?
In a recently flurry of news, we are hearing about a handful of restaurateurs who are “eliminating” TIPS from their establishments. The restaurants are either electing to pay their tipped employees through an increased hourly wage or by way of service charges. The decision to eliminate TIPS from restaurants is typically due to a result of the establishment’s inability to properly calculate the TIP distribution or a management’s failure to regulate it.

The restaurants that are electing to pay their tipped employees by way setting a fixed hourly wage for previously tipped employees. These restaurants are going to be required to increase their plate price in order to pay their employees accordingly, thereby passing on this increased expense to the patron. Simultaneously, this scenario eliminates the patrons’ ability to decide whether or not the server’s service should be rewarded by way of additional TIP or if a complaint should be the appropriate response to poor service. With a fixed hourly wage, tipped employees now have no reason to impress or over-perform, as their pay for the evening has already been set. Accordingly, this ad hoc way of restaurant management hurts everyone, not only the tipped employees, but also the patrons of the establishment.

Another way that restaurants have been dealing with TIPS and attempting to remove the variable amount left by patrons, is by implementing service charges/automatic gratuity. This solution is more palatable to the tipped employee as it still permits the patron to reward proper service, while retaining the ability to earn a favorable income as compared to a lower hourly wage. Furthermore, the customer retains the option to leave an additional money (TIPS) on top of the service charge, which creates additional administration hurdle for owners in allocating, calculating, distributing, and reporting Service charges along with regular TIPS.

The Department of Labor has intricate laws regarding who is entitled to the tip. Unfortunately, due to the high number of transactions in the restaurant business it can be almost impossible to accurately apportion and allocate the earned tips to the correct employees for every shift every single day. Mistakes are bound to happen, we are all human.

What if you could eliminate the element of the human error? Imagine the security of an automated solution that calculated the tips for the Restaurant, loaded the tip income on to a debit card, allowed tip employees to see their tip income through a secure portal and electronically stored all this information for the restaurant.

A Solution Exists

Gratuity Solutions has developed the first and only fully automated “cloud based” software system that calculates a restaurant’s tip distribution through integration with their POS system, “GRATSYNC”. The GratSync system and its associated modules may be deployed with various POS systems to speed deployment throughout the restaurant industry and as result of is innovation and uniqueness in the market, the GratSync system is currently patent pending. The Company’s patent pending software system removes the daily task of manual calculation, allocation and proper tip distribution and further protects the restaurant and its employees with a precise, secured and insured method of distribution and management of tips for the restaurant’s tipped employees. By implementing the GratSync solution, restaurants and their managers will be able to completely eliminate the daily time consuming exercise, eliminating the liability associated therewith and also receive detailed electronic reports for all tip distributions automatically at the end of every single day. In fact, the restaurant, its manager and the tipped employees will also be able to view their own specific distributions from each shift in real time, via secure web portal and mobile app. You can read more detailed information about the company and services at http://gratuitysolutions.com/

Gratuity Solutions also has developed a way to eliminate cash tip outs, by way of its Tip to Cards program. With Tip to Cards, restaurant employers now have the ability to direct deposit a tipped employee’s tip income directly to the employee’s personal debit card. Accordingly, GratSync’s restaurant clients can now eliminate cash tenders or separate checks for tip income by simply depositing the tip income to the employee’s card.

By utilizing a secure tip distribution system, management and tipped employees are able to concentrate solely on the quality of their services, therefore encouraging them to provide the best atmosphere for the restaurant patrons and adding to the profits of not only the employees, but also the restaurant owners.

“Gratuity Solutions has improved the productivity of each and every restaurant in which our Group has installed. Not only have they simplified our tip calculation and distribution process, but they have also facilitated our compliance with certain new regulations including the Health Care Act. Gratuity Solutions has exceeded our expectations at every turn and I would recommend Gratuity Solutions to any restaurant that is looking to set itself apart.”

Stewart Newbold, Director of Operations, Jose Andres’ ThinkFoodGroup

Gratuity Solutions is a Florida based company focused on restaurant tip management and payment methods, and by using GratSync the convenience and benefit that our clients enjoy today is just the beginning of the value we can deliver as a company.

Source: Florida Restaurant & Lodging Magazine

https://issuu.com/floridarestaurantandlodgingmagazine/docs/16frla_spring-web_final

Demo and Testimonials

Click Demo button to request access to our demo site
  • Gratuity Solutions has improved the productivity of each and every restaurant in which our Group has installed. Not only have they simplified our tip calculation and distribution process, but they have also facilitated our compliance with certain new regulations including the Health Care Act. Gratuity Solutions has exceeded our expectations at every turn and I would recommend Gratuity Solutions to any restaurant that is looking to set itself apart.

    Stewart Newbold, Director of Operations, Jose Andres' ThinkFoodGroup
  • Being in a business that operates 24 hours a day, GratShare™ is an essential tool to ensure our tip calculation and distribution process is flawless. With Gratuity Solutions’ intuitive technology, our establishment has been able to completely automate the once cumbersome task of dealing with employees’ tips and has made our cash out process and employee payroll incredibly painless.

    Daniel Solomon – Partner – E11EVEN Night Club, Miami
  • Sea Salt and Barbatella restaurants are using the GratSync™ Gratuity Management Software successfully. Since implementing of the use of this software in January 2012, we have received superior customer support and experienced no problems using the program. The software automatically retrieves gratuities from our point of sale system so that there are no errors when reporting tips. The reporting process literally takes minutes and is easy to use. Individual tips and reports are archived in the system should there be any future need for reference. We are very satisfied with the software as it has reduced time and errors associated with manual gratuity sharing procedures. I strongly recommend GratSync™ for any restaurant, regardless of size. For us, GratSync™ has proven to be solid and reliable.

    Lili Montes, Chief Operating Officer

Video

Video
Video

Support

If you have any inquiries or problems don’t hesitate to let us know!

Welcome to Gratsync™ support page, by clicking on the Connect me now button,
you will initiate a secure connection with our technical team who will assist you with any
technical issue you may have. If you have visited this page prior to creating a Help Desk ticket
you will be placed in the customer waiting room and the first available technician will assist you.
Please read connection disclaimer text and respond when asked to connect.

Contact

Please call us toll free with any questions, our sales and support staff will be happy to assist you with any questions you may have. At your request we also provide assistance adjusting your tip/gratuity distribution formulas in order to achieve a positive outcome that will encourage and incentivize your tipped employees to provide the best possible service and ultimately happiest customers. Please remember that all modules or necessary customization for your Restaurant are included in the total fee and there will not be any additional charges.

office@gratsync.com

1112 Goodlette Drive North #204, Naples, Florida 34102

Write Us

Gratuity Solutions is a proud supporter of

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.