[START HERE!] 7shifts Tip Payouts: Setup Guide for Admins

Streamline tip distribution and eliminate end-of-day cash handling hassles with 7shifts Tip Payouts. This feature allows you to instantly transfer employee-earned tips directly to their debit accounts, eliminating the need for manual counting and waiting for payroll.

This article guides admin users  through the Tip Payouts setup process.

What are Tip Payouts? 

Tip Payouts is a feature in 7shifts that allows you to electronically distribute earned tips to your employees. Instead of relying on cash tips or waiting for payroll, you can instantly transfer tips directly to your employees' debit accounts.

Benefits of Using Tip Payouts:

• Faster Tip Distribution: Employees receive their tips immediately, improving their satisfaction and financial well-being.
• Reduced Cash Handling: Eliminate the need for manual cash counting and reduce the security risks associated with handling large amounts of cash.
• Increased Efficiency: Streamline the tip distribution process, saving you time and effort.
• Improved Accuracy: Ensure accurate and transparent tip calculations and distribution.
• Enhanced Security: Reduce the risk of tip theft or misplacement.
• Employee Convenience: Employees can access their tips quickly and easily through their debit accounts.
• Better Record Keeping: Maintain digital records of all tip payouts for accounting and reporting purposes.

Overall, Tip Payouts offer a modern and efficient solution for managing and distributing tips, benefiting both your restaurant and your employees.

Setting Up Tip Payouts 

The Tip Payouts setup process involves the following key steps. Click on each step below for detailed instructions:

1. Setup Your Tip Calculation  
2. Build Your First Payout Batch
3. Configure Transaction Fees 
4. Connect a Payment Account
5. Send Your First Payout Batch
6. Add a Float 

FAQs:

• Q: How much will be debited from my bank account for the first payout? 
  • A: For the initial payout batch, only the amount required for that specific batch will be debited from your connected bank account. This allows you to test the feature with a small initial investment.
• Q: When will employees receive their funds? 
  • A: While employees will receive a notification of their pending payment shortly after you initiate the payout, the funds may take up to 5 business days to appear in their account due to bank account settlement and fund withdrawal processes. Please communicate this timeframe clearly to manage employee expectations.
• Q: What happens to unclaimed funds if an employee doesn't connect their bank account? 
  • A: If an employee does not accept their payout invitation and connect their bank account, the funds will remain pending. Account admins can request the funds be returned to the business account by submitting a request to our support team. 
• Q: Are transaction fees reimbursed for unclaimed payouts? 
  • A: Yes, transaction fees associated with unclaimed payouts will be reimbursed to the employer.