Tip Payouts Setup ChecklistBefore 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 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.
- Tips to Payroll. (optional) 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. 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!
⚠️ Managers/Assistant Managers with permissions can access Tip Management.
⚠️ 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:
Employee's total tips earned for this pay period. Only visible when enabled for the Account, and determined by your configuration of Tips to Payroll.
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.
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:
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.
- Login to the web app as an Admin or Manager with permissions.
In the left navigation bar, head to Tip Management > Tip Payouts.
- Click on Send tips to employees:
- Choose whether you'd like to add tips Automatically or Manually > Next:
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 Tips to Payroll 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).
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).
- When you've confirmed this payment, click Review.
- 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 ranging from 30 seconds to 30 minutes.
⚠️ It is not possible to reverse or stop a batch payout. Have more questions about a payment? Click here.
- You're all set!
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?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.
Your Dashboard in Reports
When you're ready to review this information, you can navigate to your integrated payroll export, your Tip Payout Report, or your Worked Hours and Wages Report.
Pro Tip!When encountering inaccuracies in your reported tip information, the issue is often related to the configuration of your Tips to Payroll settings. To address this, review and modify your Tips to Payroll settings to ensure your formula is calculated according to your preferences.
Can I reverse or stop a batch payout?
A: No, a batch payout cannot be reversed or stopped. In the scenario that you encounter a duplicate batch payout, it is recommended that you:
- Deduct the double-paid amount from the next payout batch.
- Deduct the double-paid amount from payroll.
Check out our FAQs section for more information about Payroll!