Tip Payouts Setup: Build your First Payout Batch

This article explains what a Tip Payout Batch is and how to build your first payout in 7shifts. Payout Batches are the core of the Tip Payouts feature, allowing you to group and process tip payments to your employees.

What is a Payout Batch?

A Payout Batch is a collection of tip amounts designated for distribution to your employees. Think of it like a digital envelope containing all the tips you're paying out at a given time. Creating a Payout Batch allows you to:

• Organize tip payouts: Group tips for specific periods or shifts.
• Track tip disbursements: Maintain a record of all tip payments made.
• Simplify processing: Process multiple tip payments simultaneously.

Building Your First Payout Batch

• When you first navigate to the Tip Payouts landing page, you'll be prompted to 'Build your first payout.' Click this button to begin the process of creating a new Payout Batch.

Adding Tips to a Payout Batch

You have two options for adding tips to your Payout Batch:

1. Automatically Sync Tips (Recommended): If you've already set up Tip Calculation in 7shifts, this is the easiest way to populate your Payout Batch. Selecting 'Automatically Sync Tips' will:
   • Gather tip data for each employee based on your configured tip settings.
   • Automatically add these employees and tips to the Payout Batch.
   • This option saves you significant time and effort, ensuring accurate tip distribution based on your existing tip calculations. 
   • Learn how to configure your Tip Calculation here. 
2. Manually Add Tips: This option allows you to build the Payout Batch from scratch. Use this method if you prefer to enter tip amounts manually or if you haven't set up Tip Calculation. When manually adding tips, you will:
   • Select each employee who should receive a tip payout.
   • Enter the specific tip amount for each selected employee.
   • This method provides more control over individual tip amounts but requires more manual data entry.

Setup Next Steps:

Once you have created your first Payout Batch and populated it with tips (either automatically or manually), you'll proceed with the remaining steps of the Tip Payouts setup process. These steps will include:

• Configuring Your Payout Transaction Fee 
• Connecting Your Bank Account 
• Sending Your First Payout Batch 
• Adding a Float