- Why
P.I.T.?
- What if I work two jobs where my income is based on my tips.?
- What if I change employers, but work in the same industry?
- How much information will P.I.T store?
- What are tip income reporting requirements?
- How long is P.I.T. good for? Can I start tracking my income now
or do I have to wait until Jan 1st?
- What if the tip income total in
my reports do not match what my employer's records state ?
- How do the reports help me make a better personal financial decision?
Frequently Asked
Questions:
Why P.I.T.?
As income fluxuates in the tip income based industries, through a series of reports, our program enables the user to track and analyze their income so the user can make decisions related to budgeting and employment based on actual
data while meeting the tip reporting requirements of the various industries.
Several different jobs can be tracked through the program. The reporting feature allows the user to review and
analyze one job at a time or all jobs combined to get a complete total of income.
P.I.T. is designed to hold data for several locations. The user just adds another source and will be prompted to
select the appropriate job when entering tips and sales. The system will start tracking the new job while storing
the data from the old employer.
PIT's database is virtually
unlimited and will store
numerous years of data, with the ability to recall prior
year information as needed.
Per IRS publication 3148, You must keep a running daily log of all your tip income. The IRS requires form 4070 Employee’s Daily Record of Tips and Report to
Employer, and Form 4070A, Employee’s Daily Record of Tips to be turned into your employer or to
keep record of daily tip income which would support declared tips earned
reported on your annual tax filing. Both forms are included in P.I.T. and are updated with every entry. In addition, P.I.T. also provides a reporting feature stating what you have tipped out to others. This is also updated with every entry.
Because of P.I.T.'s
expansive data base, it is not
time sensitive so you can start tracking immediately.
You can start entering your income at any time and receive reports base on the
date you chose.
It is important that your
records match those of your
employers. As with any
system, data entry errors can
be made and you would have to
ask your employer for more
detailed records (as this is
the income reconciled before
you leave work and most likely
the correct amount), and match
those records to what has been
entered in P.I.T. It
could be something as simple
as not entering a day you
worked, but reported tips to
your employer or entering the
same sales and tip information
in for two different days when
you only worked one of those
days. In addition, if
you did not enter the tip outs
for any given time, your
income would be
overstated. In any of
these cases, you can simply
bring up the day in question
in P.I.T., select edit or
delete and make the
correction. It's best to
record your information as you
work to avoid any errors.
Whatever you do, do not play a
guessing game with your income
- record it as you earn it.
The reporting feature
breaks down your income by the
hour, day, month and year to
give you a better grasp on
your income and cash. This can
aid you in making decisions
such as; you are offered a job
in another industry which pays
$15.00 an hour plus a benefit
package of an additional $2.00
an hour. Before you make a
decision, you can review the
reports and find that you
actually make $22.00 an hour.
Therefore, your income will
actually be reduced by $5.00
an hour. At this point,
you can decide whether to take
the job which pays less and
try to make up the reduction
in income or stay with your
current job.
Another example would be if
you are a college student or
your children are students and
you have to pay for tuition by
a certain date. You probably
will estimate by guessing how
much you can set aside based
on how much you have made in
the past at any given time of
the year. By reviewing the
prior year's comparison
reports, you can see whether
your current income is higher
or lower than the previous
year and determine how much
you can save, whether you may
need to work additional hours
or cut out other things you
spend your money on to meet
your tuition cost. If
you have any problems or
questions understanding the
reports, you can contact us
through the website and we
will guide you through any
problems or answer any
questions you have.
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