Pay instructors and contractors
How Arketa Payroll handles per-class pay, subs, guest teachers, overtime, bonuses, reimbursements, and time off.
Arketa pulls your class and time data into every payroll run, so instructor pay is calculated from what actually happened on your schedule. You review and adjust before approving.
To configure rates before you run payroll, see Payroll setup and Pay rate templates.
Tips
Tips recorded in the Arketa POS flow into payroll automatically as a tip earning on the right worker, so you don't enter them by hand. Tips are taxable income and are reported on payroll accordingly.
Cash tips
Cash tips need a little care, because the worker already has the money in hand. Employees are required to report cash tips to you once they exceed $20 in a month, and you include those on payroll so they're taxed correctly.
Cash tips are subject to federal income tax, Social Security, and Medicare. Those taxes come out of the worker's paycheck, not out of the tips they've already pocketed. So reported cash tips raise someone's taxable wages and lower their take-home on that run. It's correct, but it surprises people the first time they see it, so it's worth explaining before payday rather than after.
If a worker's hourly cash wage plus tips doesn't reach minimum wage, you owe the difference as a tip credit adjustment. Some states also require paystubs to show the hourly cash wage, the tip credit taken, and any adjustment. If you take a tip credit, talk to Arketa Support about setting it up correctly.