Are You Prepared for Holiday Overtime and Tips? What Every Small Business Owner Should Know Before December

The holidays bring in more customers—and with them, more employees, longer hours, and higher payroll demands. For small hospitality businesses, payroll can become one of the biggest end-of-year stressors.

Let’s answer some of the most common payroll questions hospitality owners face this time of year.

Question 1: How Do I Properly Track Overtime?

Overtime laws vary, but in most cases, hourly employees must be paid time-and-a-half for hours worked beyond 40 in a week. Keeping detailed, accurate timesheets is critical. Barmann Bookkeeping helps ensure your payroll records reflect every shift correctly with our Payroll Services.

Question 2: Do Tips Count Toward Overtime?

No. Tips cannot replace or count toward overtime wages. This is one of the most common mistakes small businesses make—and it can result in fines. Our payroll solutions include compliance checks for tipped and hourly employees.

Question 3: What About Seasonal Staff?

Hiring temporary employees for the holidays is common in hospitality. However, seasonal employees are still subject to payroll taxes and wage laws. We help clients streamline onboarding, set up new employees in QuickBooks Online, and manage accurate reporting from start to finish.

Managing Tip Reporting

Tip tracking doesn’t need to be complicated. Whether your business pools tips or tracks them per employee, keeping digital records prevents errors and ensures proper reporting to the IRS.

Pro Tip: Consider implementing a POS-integrated payroll solution before the holiday rush. Our QuickBooks Online Setup ensures your payroll, bookkeeping, and reporting work together smoothly.

The Importance of Year-End Payroll Review

Before the new year begins, run a final payroll audit to confirm all wages, tips, and taxes are reported correctly. This not only keeps your employees happy but also helps your accountant prepare for tax season faster.

FAQ: Can Barmann Bookkeeping work with my CPA?

Absolutely. We frequently collaborate with CPAs to provide accurate, tax-ready financials—so you can focus on running your business while we handle the details.