The Irish Salon Owners Guide to Tipping Laws, Tax and Compliance
Are you prepared?
Get your salon compliant with Ireland’s tipping laws
Here’s what you need to know
The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 came into effect in December 2022.
The legislation applies to ’employer-received’ tips
– i.e. tips paid by card.
According to the legislation, employers must:
- Fairly and transparently allocate tips and service charges to employees
- Ensure appropriate taxes are paid on tips distributed via payroll
- Pay out all employee tips within one month
- Consult with employees to create a written tipping policy
- Create and display a notice to customers outlining how tips are distributed
- Maintain tipping records and share those with employees weekly or monthly
Employees can complain to the WRC if you have not complied with the Act
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Phorest is here to support you
Introducing… PhorestTips
Phorest makes things easier by sending each employee their tips straight to their bank account, so they are not ‘employer-received’. Stylists and therapists get their tips into their account instantly, at no cost to the business. And there’s no QR code chaos for your customers.
A Win-Win for Clients, Business Owners & Your Team
5 Reasons You’ll Love PhorestTips
Instant compliance with the new tipping laws
You won’t need to worry about the legislationTax savings for your business
No employer PRSI applies, since card tips are collected directly by employees, not through payrollEmployees get their tips instantly
Stylists and therapists receive tips into their accounts instantly, without waiting for payrollA seamless personal touch for clients
A simple, thoughtful way for clients to show their appreciation, without the need for cash or QR codes
Your team will 💚 it
On average, stylists and therapists see a 25% increase in tips when using an integrated PhorestPay Card Terminal
PhorestTips is an ideal tipping solution for salon teams of all kinds,
including those that have self-employed stylists or therapists.
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Calculate your monthly savings with PhorestTips
Enter total monthly tips to see how much tax and fees salon owners and staff can save with PhorestTips*
Use the slider to input the total monthly tips taken across your employee base*.
€500
Paid by client via
Standard card payment
Tipping app
PhorestPay card payment
Cash
Paid to employee via
Payroll
Tipping app
PhorestTips
Cash
Employer taxes & fees
€55.25
none
none
none
Employee taxes
120.00
122.00
€120.00
€120.00
Retained tips
€380
€378
€380
€380
* This example assumes the employee is a standard rate tax payer – i.e. earning below €42,000 per year
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Already with Phorest?
Get more info
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