Minimum Wage Best Practices

How to Properly Record Minimum Wage Update

PURPOSE: To review how to properly record mid-week minimum wage increases to ensure employees get paid the correct wages and business does not incur unnecessary labor expenses.

RASI BEST PRACTICE: Record the updated minimum wage in both the POS and Back Office, in the Employee Profiles, on the date the new wages go into effect.

PROCEDURE:

1. Verify that you have the correct minimum wage increase for your state prior to entering the updated wage rates.

     a. TIP: Refer to compliance minimum wage updates located in Education & Training for State and Local wage rates.

2. Update wages in both the POS and the Back Office Employee Profiles to reflect the new rate.

3. Start payroll as per normal.

     a. If payroll had already been started prior to completing the first 2 steps, you must cancel and restart the payroll.

     b. NOTE: The most recent wage worked will be the wage reflected in the Back Office polled payroll information.

4. Run the "Payroll Details" Report located in Report Card > Labor Reports > Payroll Details. This report will break out the employee's payroll detailed by shift.

     a. NOTE: If you are using PosiTouch, Upserve, or Digital Dining POS Systems, they do not hold shift level detail. You will need to run the shift detail report from your POS to get the necessary break out of wage differences.

5. Run the Payroll Detail Report by Employee, prior to the minimum wage increase date and after the minimum wage increase date.

     a. For example: If the payroll is for the week of 12/30-1/5 and the minimum wage increase was on 1/1,           run the report for 12/30-12/31 and again from 1/1-1/5.

6. In the payroll, add an additional line with the same job code at the old rate and enter the sum of the hours worked at the previous wage.

7. Deduct the hours at the old rate from the hours polled in at the new rate. The total hours should sum the hours worked for the entire week.

8. Verify that the total hours match the combined hours listed on the Payroll Details Reports.

9. Verification Step - Critical:

     a. View the Pre-Check Register and verify that anyone receiving additional minimum wages (add-min) did declare the correct value of tips.

     b. Call your Back Office Client Advisor PRIOR TO SUBMITTING PAYROLL if you have any questions.

     c. If you are using PosiTouch, Upserve or Digital Dining, you need to make sure that you totaled the hours at the old rate and created a second line on the payroll with the sum of those hours AND subtracted the hours out of the top line using your POS Shift Detail Report.

          i. These POS Systems DO NOT hold shift level details, therefore, this information will not be reflected in Report Card Reports.

10. Review Pre-Check Registers, verify all totals and submit the payroll to Back Office.