Terms

What Tip Reserve does

Tip Reserve connects to Clover through a read-only integration. It reads payments, tips, employees, shifts, and the merchant profile; it never writes to Clover and never initiates a charge, refund, or payout there.

From that data it computes each employee's nightly card tips, tax set-aside, and net cash, and it produces the instructions the owner and their payroll provider need at each pay run. Tip Reserve computes and instructs. It does not run payroll and it does not move money; the owner does both.

The employee set-aside

The set-aside is not an amount taken from an employee's tips by the employer's own choice. It is funds the employee furnishes toward their own Social Security and Medicare tax on tips, under a signed, standing authorization that names the rate and describes exactly how it works.

An employee can revoke that authorization at any time from their own slip. Revocation is prospective: it applies to tips going forward, not to a set-aside already collected, which is applied at the next payroll or refunded, as the authorization itself describes.

Shadow mode and going live

A new merchant runs Tip Reserve in shadow mode first: every figure is computed and shown, but cash-outs are paid at the full gross amount until the merchant goes live. Going live requires one full sealed pay period in shadow mode.

Tip Reserve will not let a merchant go live out of a shadow period that showed wage-floor violations unless the owner records, in their own words, why they are proceeding anyway. That reason is recorded on file and can be exported.

Not tax or legal advice

Tip Reserve is not tax advice and not legal advice. It computes figures from the rules built into the product and from the data Clover provides; whether those figures are right for a particular business, and how they are used at payroll and on a tax return, is a question for the owner's own accountant and attorney.

Limitation of liability

Tip Reserve is provided as it stands, with no guarantee that every figure is free of error. Running payroll, filing taxes, and paying employees remain the owner's responsibility at every step. To the extent the law allows it, secondledger's responsibility for any claim related to Tip Reserve is limited to the fees the merchant paid for it in the twelve months before the claim.

Contact

Questions about these terms can be sent to support@secondledger.io.