Save time and eliminate Tipping mistakes by creating automated rules to calculate paid and owed tips. Accounts using 7punches , supported POS integrations, or Tip Pooling will be able to send their tip data to 7shifts and include it when processing payroll.
⚠️ This feature may require an upgrade from your current plan.
⚠️Tips to Payroll requires tip data from Time Clocking. Click here to ensure it has been set up.
⚠️ Only Admins can access and manage Tips & Pay settings.
SKIP AHEAD TO:
Glossary
Setup Tips to Payroll
Reports and Tips to Payroll
Glossary
Tip sources will vary by POS system and Payroll provider. Here's a list of terms you may encounter during your tips to payroll setup journey, and their definitions:
Tips Earned - Tips that an employee receives during a given pay period. This can include pooled tips, declared cash tips, credit card tips, auto gratuities, etc. This figure will be visible to the employee, so they can see the total value of tips they will have received in that period.
Tips Owed - The total amount of tips that an employee has earned but has not yet received. This can occur in scenarios where tips are pooled and distributed at a later date, or if there is insufficient cash on hand to pay tops at the end of a shift.
Tips Paid - These will be the tips that have already been paid to employees, prior to payroll (for example: cash tips), and are typically used for tax purposes.
Tips Out - Distributed tips from our Tip Pooling feature.
Tips In - Contributed tips from our Tip Pooling feature.
Setup Tips to Payroll
- Login as an Admin.
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In the left navigation bar, head to Tip Management > Settings:
- Select Tips to Payroll:
- Click Set up.
If you have multiple Locations, choose a Location from the dropdown menu that you would like to set up > click Add: - Configure how you pay Tips!
Customize your equations for this Location by selecting which tip sources you want to be included, and which ones you wish to deduct. The formulas you set here will determine how tip data will surface in the Worked Hours and Wages Report, and your integrated payroll export.
Here's an example of an account that pulls tip data from Toast POS + Tip Pooling + 7punches:
Taking a closer look, you'll set up which tip sources are to be Paid (show in green) and Deducted (shown in red). We'll show you your final equation based on your selections:
Pro Tip!
The tip sources available for you to choose from are dependant on which features you have enabled in your account:
1. POS
2. Tip Pooling
3. 7punches
To learn more about enabling and including these tip sources, click here.
And here to see some examples ! - When you're ready, hit Save changes to complete these changes!
- If you have multiple Locations, you'll save time setting them up as we will default the last Location's configuration when creating a new Location!
Reports and Tips to Payroll
Now that you have complete setup for Tips to Payroll, you can export and transfer your tip data by whichever method you choose:
- Your POS Integration Export.
The following is a list of eligible Payroll Integrations or Exports: - The Worked Hours and Wages Report. The numbers shown in the Tip Earnings column are linked to your custom equation.
(click on the image to expand it)
Resources & Examples
Here are a few examples you can reference on how other accounts have set up their custom Tips to Payroll equation:
POS + Tip Pooling.
The equation: Declared Tips are paid before payroll. Credit Card and Auto Gratuities are paid on Payroll. No pooled tips.
Tip Pooling Manual
The equation: Only tips from the manually contributed tip pools are paid on payroll. No other tips are paid before payroll.