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MKU account??? Florida

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  • MKU account??? Florida

    I am located in central florida and had a question maybe someone could help me out with. The company i work for now has me as a tipped employee making 4.23/hr. Fl min wage is 7.25. Here's my question, i have been recieveing pay checks with this "MKU" account. When i did the math the MKU acct adds money to the books to average out my hourly wage and tips to the min wage (7.25). ok. Here's the problem... the mku is not on my actual paycheck. Employers have to make up the difference if tipped employees are making under min wage right? and if they do, why does this money dissapear? i am also being taxed on this money i have not recieved...is this company stealing from me???

  • #2
    I know how tips are supposed to work under federal rules. I have no idea what MKU is supposed to mean. Or what you mean by "disappear". And I am having some problem following your question.

    Very basically, if we add up tips actually paid to you, plus money actually paid to you by your employer, then the total legally on a workweek basis must average at least $7.25/hr. If not, federal law is being violated.

    http://www.dol.gov/dol/topic/wages/wagestips.htm
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      Thank you for the reply,
      Let me try to clearify. Florida tipped min wage is 4.23, which i am being paid. Lets say i worked 45.77 hrs @ 4.23 = 193.60 say i recieve 75.00 in tipps which bring the grand total to 268.60. So, 268.60 devided by 45.77(hours worked) = ~5.87/hr (below FL min wage of 7.25) with a diff of 1.38. This MKU comes into play here. (1.38x45.77)= $63.16 <-- This is what is under the MKU on my paystub. My paycheck should then be $256.76. Then FICA is deducted (25.39) which now brings my total including MKU (which the accounting dept told me stands for Make Up) to 231.37. It even says on the bottom that my fed taxable wages are 306.37. Heres the problem...the actual check says 168.21 which is my hourly (193.60) minus (25.39) for FICA and of course the 75 would be cash tipps...The MKU account is not on my check! it "dissapears" I understand that some employers cut this makeup check at specific finacial periods, but ive been there 6months and other employees who have been there longer have still seen nothing and the accounting dept has no real answers. very shady.
      mavidon
      Junior Member
      Last edited by mavidon; 02-03-2010, 03:17 PM.

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      • #4
        We seem to be talking at cross purposes here. I am not a FL law expert, although FL has a reputation for having very little in the way of FL specific state law and of not enforcing what little law FL has. If you want to talk FL law, then I cannot help you. I can help you with federal law, which is actually well understood, and the feds are actually willing to maybe help you (which FL will not). But your decision.

        You said that you worked 45.77 hours. That means under federal law (FLSA) you must be paid at least $331.83 for the workweek. I do not understand why you want to use the lower FL MW number when the federal requirements are clearly much higher. Past that, you are due an additional overtime premium related payment under federal rules (5.77 x 7.25 x 50%) = $20.92. Minimum gross wages (including tips actually received) under federal rules are $331.83 + 20.92 = $352.75.

        FICA is not an issue. FICA is a tax and it is perfectly legal (and mandatory) for the employer to deduct the FICA tax. The employer is not required to pay you enough money that after taxes have deducted that you are still paid MW on what is left over. You are supposed to be paid MW before taxes, not after taxes.

        MCT is legally nothing and I will never have an opinion on it. The employer either follows the federal rules or they do not. MCT is nothing.

        Regarding "disappears", I still do not understand what you are saying, but I will try an example and see if this works. Bob gets paid $5/hr in wages, plus tips. For this week Bob works exactly 40 hours. Meaning Bob is directly paid $200 ($5/hr) by the employer. Past that, Bob earned $100 in tips ($2.50) hour. For purposes of taxation, the employer must report $300. Now Bob has already pocked the tips. The employer does not have to pay Bob a 2nd time for money that Bob already has. Instead the employer will report gross wages of $300, and deduct $100 for the tips already paid the employee. Maybe the employer will decide to call the deduction MCT or "disappear" or something else. However, IRS is really clear that all $300 is subject to taxes, even if the employee has already pocketed the tips. Federal DOL is really clear that for each workweek, the total of tips and wages must equal at least $7.25. Florida DOL is not clear about anything because there is no FL DOL. FL has a few laws but does not directly enforce those laws.
        "Reality is that which, when you stop believing in it, doesn't go away".
        Philip K. **** (1928-1982)

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        • #5
          I think I get what the OP is saying.

          Tipped workers do not always follow minimum wage laws.

          http://www.dol.gov/whd/state/tipped.htm

          In FL they can be paid $4.23 per hour and then must earn tips to cover up to the actual minimum wage of $7.25. If the tips the employee receives in total divide out to less than the difference between the two, the employer is supposed to make up the difference. In the OP's example, the employer should pay him an additional $63.16 to make up that difference. And the employer does list it on the check, but it's not in the actual take home pay of the employee. His take home pay appears to be the minimum wage for hours worked less taxes.

          OP, the only one that can tell you where your make up money is, is your employer. Talk with someone in HR or payroll and ask them to explain your paycheck to you.

          Comment

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