Tip Pooling with Manual Contribution

If you do not use a supported POS or want to use tip data from a specific source, you can still use the Tip Pooling feature. Here's how you can set up your Tip Pool and enter your tip data manually into 7shifts for redistribution.

Follow these steps to set up your Tip Pool:

1. Log in to the web app as an Admin or Manager/Assistant Manager with permissions.
2. In the left navigation bar, head to Tip Management > Tip Pooling > + Create pool.Just getting started? Click Start my free trial.
3. Add the following details about this tip pool: location, the tip pool name (required for creating multiple pools at the same location), and the calculation frequency. Click Next.
   
   
   For more information about "How often are tips calculated?", click here.

   By default, the Calculation Frequency will be set to Daily. Change this by selecting a new option from the dropdown menu:
   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 Clockingpage, 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.
   
    

    ⚠️ 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.
   
   

4. Click Next.

5. In the dropdown 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:

   

   
   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

   How Points Weighted Distribution works:

   Each person will receive a portion of the tips based on the hours they worked weighted by a point multiplier.

   Let's say the Tip Pool is $1200 and employees worked a total of 80 hours.
   Server hours get 2 points and Bartender hours get 1 point.

   All Servers worked 30 hours X 2 = 60 point-hours
   All Bartenders worked 20 hours X 1 = 20 point-hours
   Total point weighted hours are 80, therefore each point-hour is worth $15 in tips ($1200 / 80).

   Server A worked 10 hours for 20 point-hours and receives $300
   Server B worked 20 hours for 40 point-hours and receives $600
   Bartender A worked 15 hours for 15 point-hours and receives $225
   Bartender B worked 5 hours for 5 point-hours and receives $75

    

6. Next, you will need to select your Receivers:

   • Click on + Add Contributor to include more Roles/Departments. You can have as many Contributors as there are Roles under that Location.
   • Click on the copy icon to duplicate any contributors, including their filters.
   • Click on the trash icon to remove any Roles/Departments from the list of contributors.
   • 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.
   • 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. 

   

7. Click on Next.

8. 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.

   

    

9. You've just created a Tip Pool! Now you can enter your tip data into 7shifts.

   ⚠️ Managers and Assistant Managers will require the 'Can add and edit tip contributions' Manager Permission to be able to enter tip data into the Tip Pool.

   
   To enter your tip data, head to the Tip Management > Tip Pooling > select Add Tips next to the appropriate tip pool:
   

10. Enter your Tip data under the appropriate date. You can enter data for other weeks by using the date selector.

    

    ⚠️ If you enabled the Dayparts option while setting up your Tip Pool, you'll be able to enter tips for the selected Dayparts separately.

    

11. Be sure to hit Save before leaving this page or changing the week.

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