Tip Payouts Glossary

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

Earned tips - An Employee's total tips earned for this pay 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 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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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.

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


RELATED ARTICLES:

Tip Payouts Quick Start Guide
Tip Payouts Setup Overview

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