Tip Pooling for GoTab POS

Save up to 8 hours per week managing your tip pool with custom contribution and distribution rules, automatic calculations, comprehensive reports, and payroll export options. To collect your tip data,

GoTab automatically transfers sales, payment, and tip information to 7shifts. Within 7shifts, the distribution of tips/gratuities among employees is automated, with predefined setups for tip pools and allocations.

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⚠️ Prerequisites

⚠️ To access the Tip Pooling feature with your GoTab integration, you will require:

  • an Actual Sales integration with GoTab POS. (If you're not using a supported POS system, learn how to access the Manual Contribution option here)
  • Employee mapping of user profiles and roles in GoTab POS.
  • For tips to be attributed in the tip pool, please ensure that you assign users to orders/sales in your POS system.
⚠️ Admins, Managers and Assistant managers (with “Can create and edit tip pools” permissions) will be able to trial or purchase automated Tip Pooling.

⚠️ Rule changes: the open pay period will be updated even if the rule changed halfway through the pay period, or, if a past pay period was opened after the rules had been changed.

⚠️ Deactivated employees: they are removed from the open pay period, or if a past pay period was opened after the employee had been deactivated. This will affect your report figures.


Setting up your Tip Pool

      1.  Hover over the navigation bar > select Tip Management > Tip Pooling + Create Pool



      2. Set your location, tip pool name, your Calculation Frequency, and click Next.
        The name is required since you'll later have the option to create multiple Tip Pools for the same Location.
        details.png

        Click here for more information about "How often are tips calculated?"

        By default, the Calculation Frequency will be set to Daily. Change this by selecting a new option from the dropdown menu:
        dropwdownmenu.png
        Set the date for which your last pay period ended, and we'll use this date to start pooling your tips. The date will automatically default to the last date of the pay period on your Time Clocking page, but you're welcome to adjust it as needed! :Pro Tip!We recommend that you align these dates with how you view pay periods to ensure accurate reporting.selectdate.png

         ⚠️ If you want to create this Tip Pool for a specific Daypart, select 'Dayparts' from the dropdown menu , and choose which Daypart will apply to this tip pool. If enabled, an additional column for Dayparts will be included on the Tip Pool report.

        daypart_selection.png
         

      3. Be sure to select Pull in tips automatically from my POS > Next:

        Screen_Shot_2022-06-08_at_5.11.15_PM.png

      4. Select who adds to the Tip Pool! In other words, which sources will contribute tips? You'll notice the following two sections: 'Your mapped roles' and ' Unassigned tips and receipts'.
        whocontributes_sections__2___1_.png
        If you would like to create your Tip Pool with Unassigned-only Contributors, please skip to step 6.  

        Who contributes to this pool? Your mapped roles.Screen_Shot_2023-01-26_at_10.46.15_AM.png

        For transactions that are assigned to Employees, you will need to select which Roles and Departments will be your Contributors. Contributors are usually customer-facing employees that gather tips, and gratuities or collect payment during their shifts. Use the drop-down menus below to set your measures and filters:

        1. Select your Contributors:mceclip1.png

        Contribute by Role

        The team members under the Role can be both 'Contributors' and 'Recipients' (in step 9). This step is to determine how much of the initial tips received will contribute to the Tip Pool to be divided out later across the team.

        Example:Servers can contribute 100% of their tips and still receive 50% from that initial 100% that was put into the Tip Pool..

        Contribute by Department
        All roles within the Department will contribute the amount set into the tip pool.

        2. Enter a percentage Amount of the tips/sales collected that will contribute to the Tip Pool:

        mceclip2.png

         

        3. And, set your contribution type using the Tip-in based on dropdown menu:

        mceclip3.png

        Net Sales

        A portion of the employees' Net Sales

        Total Tips
        Any portion of tips made per shift.
        Remaining Tips 

        Once employees contribute to a tip pool, there may still be tips remaining. This contribution type allows those remaining tips to be contributed to the pool a second time.

        Please note:
        ⚠️ Remaining tips can only be contributed once per role.

        ⚠️ Remaining tips is only available for POS Tip Pooling.

        For example:

        A common use of Remaining Tips is when bartenders clock into a shared "Ghost Patio Bar" account when processing receipts. Why? A hectic weekend bar may see the same terminal passed around frequently, and between different bartenders. It would be too time-consuming to update the specific server for each bartender each time.

        At the end of the night, tips need to be pooled and distributed as:

        • Ghost Patio Bar contributes 5% of food sales to Support + Bussers.

        • Ghost Patio Bar contributes 100% of the remaining tips equally amongst themselves based on hours worked. 

        To accomplish this, create a new tip pool. While adding your Contributors, be sure to select Tip-in Based On: Remaining Tips.

        In this scenario, Bartenders will contribute 100% of their remaining tips... Screen_Shot_2023-01-19_at_5.40.13_PM.png

        ...and tips will be distributed equally amongst the Bartenders:Screen_Shot_2023-01-19_at_5.48.20_PM.pngA final review of the tip pooling details:
        Screen_Shot_2023-01-19_at_5.50.42_PM.png

        And by this Tip Pool, the Bartenders now share their remaining tips!

      5. Who contributes to the pool? Unassigned tips & receipts.mceclip0.png

        For transactions that are not assigned to any employees, you will need to enter and select what percentage of tips or sales will go into the Tip Pool.

        Screen_Shot_2022-06-08_at_2.25.18_PM.png
      6. Unassigned-only Contribution. To create a tip pool that only considers unassigned tips (i.e. no set contributors, mobile takeout, delivery orders, or orders where no employee is ringing them through), click on the trash can icon Screen_Shot_2022-11-24_at_2.47.45_PM__1_.png to remove other contributors as an option:

        trashciconunassigned__1_.gif


      7. Click Preview your tip pool, to see how your tip pooling rules and filters will distribute tips before it goes live - using real-time data from your POS integration.
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        7shifts will pull your POSs' actual labor data from the selected date range to show you how tips will be distributed among the employees who worked that day. Review and edit your tip pool's rules and immediately see the numbers adjust accordingly!

        ⚠️ By default, the Tips Collected column will automatically include all tip sources (i.e. CC tips, Auto-gratuities, Declared tips). Once you have set your tip sources in the following step, 7shifts will hold those settings as the new default whenever you revisit this tip pool's Live Preview.

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      8. When you're ready, click Next:
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      9. From here, you'll need to select the fields on your POS that you wish to pull in tip data from. This will be the initial source to calculate the Location's total tips, which will then be divided out between your staff from there.

        Check any boxes that apply, then click on 'Next.'

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        ⚠️ These fields may vary depending on the specific setup on your POS. Hover your mouse over the question mark icons for more details about each option.

      10. In the dropdown menu, determine how you'd like tips to be redistributed to your team. All distribution methods will reallocate tips based on employees' actual worked hours. Select any 1 of the 3 distribution options:
        Screen_Shot_2022-06-08_at_3.37.29_PM.png

        Click on the panels below to learn about each distribution type:

        Equal Distribution

        How Equal Distribution works:
        Each person will receive a portion of the tips based on the hours they worked. Let's say the Tip Pool is $500 and employees worked a total of 25 hours.
        $500 / 25 hours = $20 in tips per hour worked Server A: worked 10 hours and receives $200
        Server B: worked 7 hours and receives $140
        Food Runner: worked 8 hours and receives $160

        Percentage

        How Percentage Distribution works:
        Each role group is entitled to a specific percentage of the Tip Pool. Each person who worked that role will then receive a portion of the tips based on the hours they worked.

        Let's say the tip pool is $1000, Server distribution is set to 60% ($600) and Bartender distribution is set to 40% ($400).

        Server A worked 8 hours and receives $240
        Server B worked 12 hours and receives $360
        Bartender worked 5 hours and receives $400

        Note that since only 1 bartender worked, they will receive $400 regardless of the number of hours they work

        Points Weighting
      11. Next, you will need to select your Receivers:
        • Click the dropdown and select a Department or specific Role.
        • Click on '+ Add Receiver' to include more Departments or Roles.
        • Click on the 'Trash' icon to remove any Departments or Roles from the list of receivers.

        Screen_Shot_2023-01-26_at_12.04.23_PM.png

        ⚠️ You can have as many receivers as there are Departments and Roles under that Location, regardless if those Roles are already set up as Contributors (in step 6).

        If you chose to use the 'Percentage' or 'Points Weighting' distribution methods, you will need to enter a percentage or amount of points beside each Department or Role.

        Screen_Shot_2022-06-08_at_3.45.47_PM.png

        ⚠️ If using the 'Percentage' distribution, there will be a tally at the bottom to ensure that you are not under or over the 100% total. You will be unable to proceed unless your total is at 100% exactly. 

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      12. After you have set up which Departments and Roles will be receiving tips, click on Next.

      13. Lastly, you will be given an overview of how your Tip Pool will be set up. Here you can go back through any steps to make any changes needed, or click on Save my tip pool to finalize it. 

        Screen_Shot_2022-06-08_at_3.40.49_PM.png

        Success! You've just created a Tip Pool.

        Now you're ready to create more Tips Pools or access any of your Tip Pooling reports!


Troubleshooting 

As GoTab is one of our partner-lead integrations, their Support team will be handling any questions regarding the integration and their system.

Please reach out to GoTab's Support team (support@gotab.io)
if you have any questions about data-related discrepancies (i.e. mapping, sales, report figures).


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