To find this report go to Start> Reports> Driver Checkout.
At the end of every driver’s shift, you check out his delivery bag. The driver must never check out his own bag.
If you do the checkout exactly as described here the tips will be recorded for each driver and will appear in the payroll report.
Sometimes drivers will attempt to circumvent taxes by removing cash from their bags. Remember that this report is a math problem which we did by hand for decades. You can always break out a calculator to make sure the numbers are correct.
Note the example image. The customers gave this driver at least $74.51 in cash. Add his $20.00 bag. The minimum amount of cash in his bag must be at least $94.51. If he has any less than that amount, he either is hiding money or made an error at a customer’s door giving change. With this Driver’s Total Cash of $100.00 you can see he made $5.49 in cash tips. This will be added to his pay for tax purposes when you run the Payroll Report. It won’t add the money on his paycheck because he already got his tips and gas when you did the bag.
This is important because, if you are paying driver’s less than minimum wage, you need tip income to bring them up to minimum wage. Also, if you are ever audited by the IRS or state employment commission, they will hold you accountable for the FICA, FUTA and state employment taxes on those tips.
In this case, if $79.61 is entered as the Driver’s Total Cash, you would have no record of any tips for that driver. Yet the government audit would show there was $8.00 in credit card tips for which you personally would owe the taxes. And they may even arbitrarily decide that there were at least 8% of the cash in tips and tack that on too.