Sherm's Catering Employee Bonus Plan

At Sherm's Catering, we value the hard work and dedication our team puts into delivering exceptional service to our customers. Occasionally, our customers show their appreciation by giving an extra gratuity for the great job we do. To ensure fairness, this "extra" is distributed among the team members working on that specific day based on the following guidelines:

Corporate Bonus Distribution Policy

1. Credit Card Deduction:
• If the extra gratuity is provided via credit card, a deduction of 10% will be made first to cover bank fees and taxes.
2. Initial Distribution to Servers and Chefs:
• Each server and chef working that day will receive $75 from the remaining amount.
3. Equal Distribution to Remaining Staff:
• The balance of the gratuity will then be divided equally among all other staff members working that day, with each receiving $25.

Example Calculation:

If a customer provides an extra gratuity of $500, the distribution will work as follows:

• Step 1: Deduct 10% for bank fees and taxes.
• $500 x 10% = $50
• Remaining amount: $450
• Step 2: Allocate $75 each to servers and chefs.
• For 2 servers and 2 chefs: 4 x $75 = $300
• Remaining amount: $150
• Step 3: Allocate $25 each to all other staff members.
• If there are 6 additional staff members, 6 x $25 = $150
• Total distributed: $500

Wedding Bonus Distribution Policy

If a wedding client provides a gratuity of $800, the distribution will work as follows:

• Step 1: Deduct 10% for bank fees and taxes.
• $800 x 10% = $80
• Remaining amount: $720
• Step 2: Allocate $50 to each of the 3 chefs.
• 3 x $50 = $150
• Remaining amount: $720 - $150 = $570
• Step 3: Divide the remaining amount among the 6 servers.
• $570 ÷ 6 = $95 per server

Final Distribution Summary:

• Each chef will receive $50.
• Each server will receive $95.

Key Notes:

• Bonuses are only distributed to staff members who were scheduled and actively working on the day the gratuity was provided.
• In cases where the gratuity is not evenly divided, adjustments may be made to ensure fair distribution.

Thank you for your continuous hard work and dedication to making Sherm’s Catering the best it can be!