How to track Tips Paid through Tip Payouts in 7shifts Payroll

Question

How do I ensure accurate tax reporting for employee tips paid via Tip Payouts, and what steps can I take to accurately track these payments in 7shifts payroll?

Answer

Tip Payout amounts can be tracked for tax purposes using the Tip Calculation setting. This setting ensures that Tip Payout values sync into the Tips Already Paid column in Payroll.

Steps to Set Up Tip Calculation:

1. Login to the 7shifts web app as and Admin user. 
2. Navigate to Tip Management  > Settings > select Set your tip calculation.
3. Select the correct location from the list.
4. Under Tips paid on Tip Payout or payroll, click the Paid field.

5. Choose either Tip Out (Tip Pooling) or Declared (7punches) based on your business needs.

6. Click Save and preview changes.