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Industry Type limitations to be aware of

Zenefits supports the following types of businesses, with some limitations to be aware of.

Restaurants (including tipped employees)

Zenefits is able to support cash and credit card reported tips in the following ways:

  1. Cash tips are processed by creating a new Reported Tips earnings pay type and adding the new type to worker pay stubs. The Reported Tips earnings pay type calculates the taxes to be withheld on tips but does not contribute toward net pay.
  2. Credit card tips are processed in two parts:
    • First, credit card tips are processed under the Reported Tips pay type in order to be taxed and reported correctly on filings /W-2s as tips. 
    • Then, on a separate off-cycle pay run, tip amounts are paid out to employees using the Reimbursement earning type. The Reimbursement earnings pay type is non-taxable and will ensure workers’ tips are not taxed twice when paying them out.
    • We support the calculation of uncollected tax—if the worker doesn't have enough income to withhold against, we'll record it and attempt to collect taxes in subsequent pay runs. If the uncollected tax is still in arrears at the end of the quarter, we'll update the Federal Form 941 accordingly.

Note: We don’t support tip credit, tip minimum wage, or tip reporting calculations, and don’t complete the annual employer report.

Religious institutions (including employees who are clergy members)

Zenefits doesn't have a feature for admins to set company level exemptions for Social Security or Medicare taxes in the Company Profile. If employers need to ensure that employees are not taxed for Social Security, Medicare, or any other tax type, the payroll administrator can do the following:

Set and manage exemptions on the individual employee profile in Zenefits

Set up the employer portion for these taxes on the employee profile as a separate entry from the employee exemption

Cannabis or  Crypto  companies

Zenefits banking partners for payroll and  FSA  are federally insured, national institutions that must comply with federal law. As a result, we are unable to support cannabis or  crypto  companies due to the the regulations of our banking partners.

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