One Step Better Podcast

Your Tip Structure Has Payroll Risks You Haven't Thought About


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Most business owners set up their tip policy once and never think about it again. That's usually when the problems start.


In this episode, Matt and Mike get into the compliance side of tipped employees that most owners don't hear about until they're already in trouble. They cover why overtime math gets ugly when tipped and non-tipped hours land in the same week, what happens when nightly cash-outs create paychecks with zero withholding, and how the One Big Beautiful Bill just expanded FICA tip credit beyond restaurants for the first time.


Highlights include:

  • Why tipped overtime isn't calculated the way most owners think

  • What net zero paychecks are and why your employees blame you at tax time

  • The 80/20 rule and how it changed who can do what during a shift

  • How FICA tip credit just expanded to salons, spas, and other tipped industries

  • Why "we've always done it this way" is the most expensive sentence in your business


If you have tipped employees and nobody has explained how all of this actually works, this episode will show you where the risks are before they find you.


Subscribe so you don't miss Part 2, where Matt and Mike flip to the customer side of tipping and why the checkout experience at most restaurants is quietly working against them.


#OneStepBetter #TippedEmployees #FICATipCredit #SmallBusiness #RestaurantOwners #SalonOwners #OvertimeRules

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One Step Better PodcastBy Whirks

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