4. Send Your First Tip Payout

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Are you ready to pay your Employees their tips? We'll begin by heading to your Tip Overview to initiate your first payment!

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Prerequisites

⚠️ Managers and Assistant Managers will require:

Can process payouts to send tips to Employees.

Can invite payees to manage employee profiles and invite them.

Managers and Assistant Managers with both permissions (can invite payees, can process payouts) will be able to process payout batches, and invite employees to Tip Payouts.

⚠️ The user who initiates the batch cannot be included in the batch as a payee.

⚠️ A maximum amount of $2000 can be sent per transaction.  


The Tip Overview 

Welcome to your Tip Overview, with Tip Payouts enabled! Located under Tip Management > Overview.

The daily values you see here are updated in real-time to give you a snapshot of the live tip amounts earned by, paid to, and owed to your team. 

Owed Tips are calculated by:
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Send Tips to Employees

We'll use the values in your Owed Tips column to send to Tips Payouts (or, to payroll).

  1. Login to the web app as an Admin, or Manager/Assistant Manager.
  2.  
  3. In the left navigation bar, head to Tip Management > Overview (or, Tip Management > Tip Payouts/Payout Log).

  4. Click on Send tips to employees. Only Managers/Assistant Managers with permissions will see this option. 

  5. Verify the pay period you'd like to initiate a payment for. The pay period dates will default to the current one that you're in:



    If there's a change in the pay period, we'll make sure to reset it accordingly. That means, if you're reviewing tips owed for the current pay period but want to pay for the previous one, we'll adjust the figures to reflect what was owed in the earlier period.

  6. Choose whether you'd like to add tips Automatically  or Manually Continue:



    Depending on your selection, you can note the following:

    If you've selected Automatically Sync...

    The Owed Tips values in your Tip Overview will pre-populate in your Payout Batch. For this reason, please ensure you have completed the setup for your Tip Calculation settings.

    Review the amount to be paid out to your Employees, or customize this payout even further (by editing the tip amount, removing an employee using the delete icon, or adding an employee).

    When a Tip amount is edited, we'll confirm if you'd like to override and adjust the owed balance for those employees. Choosing not to override the owed balance will return the difference to your Owed Tips amount (also displayed in the last column of your Tip Overview).

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    Need to make changes to the Pay period (for example: payout for the last pay period instead)? Click the Edit button pencil-icon.png and we'll reset the values according to what was owed in that earlier pay period.

    If you've selected Manually Add...
    Build out this payment from scratch by adding employees and the tips they will receive as additional earnings (i.e. this will not affect their Owed Tip amounts).

    Screenshot 2024-04-05 at 4.13.52 PM.png

    Need to make changes to the Pay period (for example: payout for the last pay period instead)? Click the Edit button pencil-icon.png . If there were any manual adjustments/added values, those values would stay the same and carry over to the according pay period.

  7. When you've confirmed this payment, click Review.

  8. Click Pay to confirm the payout details and begin processing the transfer. 

    ⚠️ Please note that at this step, funds are transferred immediately. Tip Payouts may vary in deposit time, typically 30 seconds to 30 minutes.

    ⚠️ It is not possible to reverse or stop a batch payout. Have more questions about a payment? Click here.


  9.  Click Done, and you'll be taken to your Payout Log. The batch will appear as "Processing" until "Paid".

    We'll also let you know if a float top-up has been initiated, and when to expect your funds:



  10. Awesome job! You've successfully sent your first Tip Payout!

    Returning to your Tip Overview, you'll notice that the values have been updated. For example, the dashboard below has updated the Owed Tips column to $0 to reflect the completion of a batch payout:




Additional Actions

These are a few features you can use to manage your Tip Overview data even further:

Owed Tips. If you see that there are Owed Tips remaining, these are values leftover from when the payment was initiated (i.e. choosing to override and adjust an owed balance). At this point, you can forward these values to payroll.

Lock data. As the Tip Overview is constantly syncing live data, use this button to freeze and prevent any tip data changes. Once the pay period ends, we will automatically lock this data 3 days after the pay period has ended.

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Reopen pay period. After locking a timesheet, you can reopen it to resync the pay period data. Any changes applied to your tip data (such as adjustments in tip pooling, labor or sales) after you locked the timesheet will also change your Tips Owed amounts.

⚠️ Reopening a timesheet is a permanent action that cannot be undone. You can always close it again, but you will permanently lose the values that you had if these values were to change.


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Glossary

Earned tips.

Employee's total tips earned for this pay period. Only visible when enabled for the Account, and determined by your configuration of Tip Calculations

Paid on shift.
The total amount of tips already paid to an employee outside of 7shifts for that pay period (e.g. cash tips that are taken home).

Paid on Tip Payouts.
The total amount of tips paid through Tip Payouts for that pay period.

Owed tips.
The outstanding tip total owed to the Employee that is being paid through Tip Payouts or Payroll. These are also tips that an employee has earned but not yet been paid. 

Owed Tips are calculated by:
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RELATED ARTICLES 

To see this in action, check out our Tip Payouts Overview video!

On the Tip Payouts tab, you can discover:
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