We run a catering business, and reckon that our employees double their takings from the tips. Surely we can make some allowance for this?

 

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12. We run a catering business, and reckon that our employees double their takings from the tips. Surely we can make some allowance for this?

No - not unless tips are in your possession at the time they are allocated to staff, eg you put them through the payroll. Even if all the tips are collected, pooled and divided equally, but by an employee designated as 'troncholder' - so that you know how much employees are making from them - you cannot include this figure when calculating whether your employees are receiving the minimum wage, unless you put the lot through the payroll.