Pay Tips - How to send a Tip Payout

Tip Payouts Setup Checklist

Before you get started, please review this checklist to make sure your Account setup is complete. We rely on the data and configurations you have set to ensure accurate tip information across your 7shifts account. Once this is finalized, we'll let you know the tip amount to pay your Employees and automatically initiate the transfer right to their debit accounts (or, to payroll)!
      
  • Mapped POS Integration Roles & Employees. Only needed if you have a POS integration that is syncing labor and sales data (e.g. credit card tips) from the POS. This ensures your employee's data is propagated to the features listed below.
  • Time Clocking. Your settings will determine how an employee's worked hours are recorded, and which features your team can access.
  • Tip Calculations. We'll use the equation you've set here to calculate the total value of paid and owed tips. This must be set in order to automatically sync tip data for a tip payout.
  • Tip Payouts Setup Guide. Digitally send tips and transfer funds directly to your Employee's debit cards. We'll populate the list of employees to be paid and the tip amounts they'll receive. You'll have the flexibility to edit the amounts deposited, or send them right away!
  • Tip Pooling. (optional) The tip pooling rules you've defined, that is how tips are contributed and distributed, will determine the tips each  Employee will receive from all sources.
⚠️ Prerequisites

⚠️ Access to Tip Payouts is available to Managers/Assistant Managers with permission: Can process payouts.

⚠️ Certain features displayed below may require an upgrade from your existing plan.


The Tip Payouts Dashboard 

Welcome to your Tip Payouts Dashboard! The daily values you see here update in real-time to give you a snapshot of the live tip amounts earned by, paid to, and owed to your team:

 

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 Tips 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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Send Tips to Employees

Ready to pay your Employees their tips? We'll use the values in your Owed Tips column to send to (1) Tips Payouts, or to (2) payroll.

⚠️ Managers and Assistant Managers (with permissions: Can invite payees, Can process payouts) will be able to process payout batches, invite employees, and send batches to employee profiles.

⚠️ 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.  

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

  4. Click on Send tips to employees:




  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. For example, 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 was 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 dashboard 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 Payouts Dashboard).

    Screenshot 2024-02-28 at 3.13.15 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 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 2024-02-28 at 3.14.28 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.  You're all set! 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. Returning to your Tip Payouts Dashboard, 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:




What's Next?

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 Payouts dashboard is constantly syncing live data, use this button to freeze and prevent any tip data changes from impacting this payout. Once the pay period ends, we will automatically lock this data 3 days after the pay period has ended.



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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On the Tip Payouts Dashboard, you can use the tabs to discover:

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