Tip Management Overview
This article introduces the new, unified Tip Management system designed to make tip tracking more accurate with payroll. The Overview Dashboard aligns with your existing Pay Periods and allows you to track all paid tips in 7shifts. This change ensures accurate tracking and easier reconciliation for you and your team.
We are currently performing updates to the Tip Management Overview. During this time, the Show Outstanding Tips toggle and the Mark Tips as Paid features are temporarily disabled on the Overview dashboard.
What this means for your current view:
- The dashboard currently displays tips earned and paid specifically within the selected pay period.
- Historical unpaid tips from a previous pay period will not carry over into the current view as a cumulative total at this time.
- All tip data remains accurate and reports are syncing in real-time.
Things to Know
- Adjusting Time Clocking pay periods in 7shifts may trigger a recalculation in tips. This recalculation can impact the amounts reflected in Tip Payouts, Tips to Payroll, and Tip Pooling.
- The Tip Management add-on must be enabled in the account to access the Tip Management Overview dashboard.
- All Managers/Assistant Managers have access to the Tip Overview if the add-on is enabled.
- Sending tips to Employees from the Tip Overview is only available for Accounts with Tip Payouts enabled. Click here to learn more.
- Certain features displayed below may require an upgrade from your existing plan.
Setup Requirements
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. If enabled, automatically initiate the transfer right to their debit accounts with Tip Payouts!
- 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.
- Tip Calculations.(optional) We'll use the equation you've set here to calculate the total value of paid and owed tips. This must be set to automatically sync tip data for a tip payout.
- Tip Payouts.(optional) 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!
The Tip Management Overview
Welcome to your Tip Overview! Located under Tip Management > Overview.
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. Only Active Employees will appear in the Tip Management Overview. Inactive employees will not surface here.
Earned Tips: The total amount of tips earned by the employee in the selected pay period. Earned tips can be configured here.
Paid on shift: The total amount of tips paid to the employee outside of 7shifts.
Paid in Tip Payout: The total amount already paid to the employee through Tip payouts.
Paid on payroll: The total amount of tips paid to the employee via payroll during this time frame.
Owed tips: The outstanding tip total owed to the employee. Owed tips is calculated by Earned Tips - Paid on shift - Paid in Tip Payout - Paid on Payroll.
Key Updates
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Unified Pay Periods
Tip tracking now follows your regular pay periods instead of a separate “Tip Period” (the cycle you use for time clocking and payroll). This eliminates misalignment and confusion, creating one consistent cycle for tracking pay in 7shifts.
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Tip Pool Settings Change
Any changes to Tip Pool settings only apply going forward from the current pay period. Historical reports are not affected.
Paying & Reconciling Tips with Tip Payouts
Using Tip Payouts is the fastest way to pay employee's their tips and to clear owed tips directly from your ledger.
- Navigate to Tip Management > Overview in the 7shifts web app.
- Select Send tips to employees to create a payout batch.
- Send the payout batch.
- This action automatically deducts the tips from the employee's owed balance in the ledger.
- The paid amounts will then appear in the Paid in tip payout column, successfully clearing them from the Owed Tips balance.
⚠️ Reporting: The Paid on Tip Payouts column on the Worked Hours and Wages report only calculates and displays as a weekly sum. Therefore, they will not appear in the Worked Hours and Wages report if you run it for any period less than a full week, nor will they be included in the corresponding CSV export, as the export does not support weekly sums.
Reconciling Tips with 7shifts Payroll
When you use 7shifts Payroll, the tips owed to employees are synced automatically.
Not yet using 7shifts Payroll? Check out this guide to learn more.
- Follow the steps in this article to Run Payroll.
- Tips to be Paid: Owed tips from the ledger will automatically populate in Payroll as "Tips to be Paid" and be included in the employee's paycheck.
- Tips Already Paid: Any tips you have already reconciled using using 7shifts Tip Payouts will also appear as Tips already paid and are tracked for accurate tax reporting.
Employee View (Estimated Tips)
- On the employee side (mobile app/dashboard), Estimated Tips should equal the Earned Tips total that managers/admins see on the web.
Admin/Manager Web View:
Employee Mobile Dashboard View