Advancing restaurant industry tipping practice management, Paychex recently launched the Netspend Tip Network system to handle wage distribution for tipped workers with increased efficiency by tracking and calculating tip totals.
Establishments using new system for distribution of tip income rely on paycards without any necessary prefunding. Tip Network is designed to facilitate cash flow and reduce unnecessary bank trips. At the end of each shift, employees can be reimbursed electronically after any pooling procedures are complete.
Advantages include increased security due to less cash handling and the ability to analyze results and plan based on statistics.
“The complications that come with managing tips represent a significant burden,” Tom Hammond, Paychex’s vice president of corporate strategy and product management, said. “Tip Network is the latest solution Paychex is offering to clients to help restaurant employers and employees manage the administrative challenges unique to the restaurant industry.”
Based in Rochester, New York, Paychex serves over 19,000 restaurants nationwide to meet the industry’s challenges, according to the company. Netspend is an Austin, Texas-based vendor offering financial management choices through prepaid products.
“We chose Paychex because we felt it would be like having a partner in our business … and our service has been wonderful,” said Mike Galderio Sr., who owns the Illinois-based, family-run Balagio Ristorante. “It takes a lot of pressure off, as it’s another aspect of the business that you don’t have to worry about. They help me achieve my goals every week.”
