Tip Glossary

Here's a list of terms you may encounter during your tip calculation setup journey, and their definitions:

Term Definition
Earned Tips The total tips an employee receives during a given pay period, including pooled tips, declared cash tips, credit card tips, and auto-gratuities. This figure is visible to employees, allowing them to see the total value of tips earned for that period. Only visible when enabled for the Account, and determined by your configuration of Tip Calculations
Float Top Up
A float refers to funds set aside for transactions or to cover expenses. With Tip Payouts, you can select an amount that you want in your 7shifts float account at all times. When the balance falls below the amount you have set, we will automatically top-up funds in your Account to ensure you always have the funds to payout your staff.
Owed Tips The total amount of outstanding tips an employee has earned but has not yet received. This can occur when tips are pooled and distributed at a later date or if there is insufficient cash to pay tips at the end of a shift. Owed tips are paid through Tip Payouts or Payroll.

Owed Tips are calculated by the following equation:

=(Earned Tips - Paid on shift - Paid on Tip Payouts)
Paid on Shift

The total amount of tips already paid to an employee outside of 7shifts for that pay period, such as cash tips taken home. These tips are typically paid prior to payroll and are used for tax purposes.

Paid on Tip Payouts

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

Tip Calculation

Let us know how to calculate your tip by customizing your equations for a Location. This includes 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. Learn more about Tip Calculation here.

Tip Credit Calculations

If enabled, this setting lets you create tipped employee roles. Once set up, 7shifts will calculate any tip credits owed to employees if/when their pay is below the minimum wage. 

You must have Wage-based roles enabled to use tip credit calculations.

Tip Pooling

Define custom tip contribution and distribution rules to ensure fair tip sharing. Learn more about how Tip Pooling and Tip Payouts work together.

Tip Sources These are the tip data sources we can sync from your POS. Depending on your POS, tip sources may vary from CC Tips, auto-gratuity, cash tips and declared tips.
Total Tip In The total tips an employee contributes during a pay period, calculated from our Tip Pooling feature.
Total Tip Out The total tips an employee receives during a pay period, calculated from our Tip Pooling feature.
Unassigned Tips

Tips and sales receipt data are categorized as "unassigned" under the following circumstances:

  • The mapping status is unmapped or ignored. This may be unintentional if an employee’s profile isn’t correctly mapped to 7shifts. This may be intentional if you have ghost profiles or takeout roles.
  • Time punches are missed. This happens if an employee doesn’t clock in (or forgets to) but has sales and tip data from their shift. For example, a salaried manager who doesn’t clock in but settles a bill.
  • Time punches have no associated role. This happens if an employee clocks into their shift but doesn’t specify their working role. You can find their name in the detailed Tip Pooling report under the “unassigned” row.

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