Act on the result
Compare the employer cash shortfall with payroll records and current federal coverage and notice facts.
Educational only: Work and pay decision support, not tax, legal, financial or career advice.
Privacy: No account is required. Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
Update policy: Reviewed when formulas or official dependencies change.
Scope: US work and pay planning using your own assumptions.
What this calculator helps you decide
Best for
Checking a federal employer cash shortfall for a confirmed FLSA tip-credit workweek without overtime.
Outputs
Entered cash pay, federal pay floor, credited tips, employer shortfall and required cash pay.
Start here
Confirm federal-only tip-credit coverage and employer notice, then enter cash wage, hours and actual tips.
- Close-intent boundary
- Do not use this to annualize tips; use Tips Income Calculator for entered tip income. This local surface excludes overtime and all state and local tipped-wage rules.
Value raises and extra income
Federal Tipped Wage Shortfall: entered cash pay
Entered cash pay, federal pay floor, credited tips, employer shortfall and required cash pay.
Federal tipped-wage shortfall inputs
Use only for a confirmed federal FLSA tip-credit workweek with no overtime.
Your numbers stay in this browser
Cash wage paid directly by the employer before any shortfall.
This bounded calculator excludes overtime and supports no more than 40 hours.
Actual tips available for the federal tip-credit comparison.
Coverage and notice confirmationsOpen the assumptions you are less likely to change on every comparison.
Use the calculation only after coverage is confirmed.
State and local tipped-wage rules are outside this calculator.
Confirm the employer notice requirement outside the calculator.
FLSA tip-credit coverage must be confirmed outside this engine
Result needs confirmed assumptions
Review the highlighted assumptions and confirm the required eligibility or coverage choices before calculating a result.
Why no estimate is shown
Wage101 does not infer legal eligibility or coverage. Review the formulas and scope before entering a confirmed scenario.
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario values are visible in the URL, calculations run in the browser, and optional saved state stays only on this device. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| directCashWagePerHour | Cash wage paid directly by the employer before any shortfall. | USD/hour | 0 to 1000000 | Required | 2.13 |
| hoursWorkedInWorkweek | This bounded calculator excludes overtime and supports no more than 40 hours. | hours/workweek | 0 to 40 | Required | 40 |
| tipsActuallyReceivedInWorkweek | Actual tips available for the federal tip-credit comparison. | USD/workweek | 0 to 1000000 | Required | 160 |
| coverageConfirmed | Use the calculation only after coverage is confirmed. | confirmed coverage status | 2, 0, 1 | Required | Not confirmed |
| federalOnlyConfirmed | State and local tipped-wage rules are outside this calculator. | confirmed jurisdiction scope | 2, 0, 1 | Required | Not confirmed |
| employerNoticeConfirmed | Confirm the employer notice requirement outside the calculator. | confirmed notice status | 2, 0, 1 | Required | Not confirmed |
Federal Tipped Wage Shortfall: entered cash pay
Use the result only for the confirmed federal tip-credit workweek shown; it does not clear state, local or overtime rules.
Formula summary
- Primary formula
- employerShortfall = max(0, minimumDirectCashPay − cashPay, federalMinimumPay − cashPay − creditFromActualTips)
Data used here
- US federal tipped-wage floor and tip-credit rules checked 2026-07-27: US Department of Labor, Wage and Hour Division; verified; checked 2026-07-27.
Decision checks
Stress-test the decision
Retest actual tips, hours and direct cash wage separately.
Assumptions and sources
- US federal tipped-wage floor and tip-credit rules checked 2026-07-27
- US Department of Labor, Wage and Hour Division, Fact Sheet #15 Checked 2026-07-27.
Primary source →
When this estimate can be misleading
- Overtime and workweeks above 40 hours are excluded and fail closed.
- State and local tipped-wage rules, tip pooling, deductions and eligibility decisions are excluded.
- Use the result only for the confirmed federal tip-credit workweek shown; it does not clear state, local or overtime rules.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Use these practical guides to interpret the decision and its assumptions.
- US Tipped Wage: what the Wage101 calculator includes
Calculate the federal employer cash shortfall for a confirmed FLSA tip-credit workweek of no more than 40 hours.
Read guide
Frequently asked questions
What federal employer cash shortfall applies in this confirmed FLSA tip-credit workweek?
Compare the employer cash shortfall with payroll records and current federal coverage and notice facts.
Does this calculate tax or take-home pay?
Federal-only, confirmed tip-credit coverage with no overtime; state and local rules are excluded.
Which official source and period does this use?
Official US Department of Labor Fact Sheet 15 captured and reviewed 27 July 2026. Coverage: rules checked 27 July 2026.
Can I share or save a scenario?
Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
How should I use the calculated result?
Treat the calculated result as one scenario, then verify the input record with the greatest effect on that result.