Tip Pooling

Save up to 8 hours per week managing your tip pool with custom contribution and distribution rules, automatic calculations, comprehensive reports, and payroll export options. To collect your tip data, there are two contribution methods:

POS Integration Contribution - Companies using Toast POS or TouchBistro POS will be able to automatically collect and divide tips and gratuities among employees.

Manual Contribution - If you do not use a supported POS or want to use tip data from a specific source, you can use this method to enter your daily tip data into 7shifts for redistribution among your employees.

SKIP AHEAD TO:
Enabling Tip Pooling in your Account
Setting up your Tip Pool - Toast POS Integration Contribution
Setting up your Tip Pool - TouchBistro POS Integration Contribution
Setting up your Tip Pool - Manual Contribution
Managing / Editing multiple Tip Pools
⚠️ This feature is offered as a paid add-on. Please see our Pricing Page for more information.
⚠️ Tip Pooling is also available to those only using tip data through 7punches. However, only employees' Declared Tips will be included in the Tip Pool's calculations.


Enabling Tip Pooling in your Account

To access the Tip Pool feature:

1. Head over to the 7shifts logo > Add-ons.


Screen_Shot_2022-06-06_at_6.38.07_PM.png

2. Select the 'Tip Pooling' add-on.
6201565949eea.png

3. 
An Admin, Manager, or Assistant Manager has the option to start a free trial if you'd like the try out the feature. Only Admins will be able to proceed with purchasing the Tip Pooling add-on at the end of the trial.

4. Next, select the 'Go To Tip Pooling' button to get started right away.

Going forward, this tool will also be available on the Tip Pooling tab:


Setting up your Tip Pool - Toast POS Integration Contribution

⚠️ To access the Tip Pool feature using POS Integration Contribution, you will require the following:

1. An Actual Sales integration with Toast POS. (If you're not using a supported POS system, learn how to access the Manual Contribution option here.)

2. 7punches for time clocking or an Actual Labor integration with Toast POS (since this feature relies on employees' worked hours in order to redistribute tips).

3. Have Role and Employee mapping completed. This will ensure that Employees will be assigned the correct tips, based on their hours and Roles.

For Toast POS users, click here to see other steps to consider.
⚠️ By default, Managers/Assistant Managers will have access to manage or edit the Tip Pool settings. However, Admins can change this by enabling or disabling the Manager Permission 'Can create and edit tip pools.'
To set up your Tip Pool :

1. Head to the Tip Pooling tab, and click on 'Create pool' :

 

2. Select your Location, enter a name for your Tip Pool, set your Calculation Frequency, and click Next.

The name is required since you'll later have the option to create multiple Tip Pools for the same Location.

details.png

By default, the Calculation Frequency will be set to Daily. Change this by clicking on How often are tips calculated: 'Daily', and select a new option from the dropdown menu:

dropwdownmenu.png

Set the date for which your last pay period ended, and we'll use this date to start pooling your tips. The date will automatically default to the last date of the pay period on your Time Clocking page, but you're welcome to adjust it as needed! :

Pro Tip!

We recommend that you align these dates with how you view pay periods to ensure accurate reporting.


selectdate.png

⚠️ If you want to create this Tip Pool for a specific Daypart,  select 'Dayparts' from the dropdown menu , and choose which Daypart will apply to this tip pool. If enabled, an additional column for Dayparts will be included on the Tip Pool report.

daypart_selection.png

3. Here, be sure to select the option 'Pull in tips automatically from my POS', then click on 'Next.'

Screen_Shot_2022-06-08_at_5.11.15_PM.png

4. Next, you will select who adds to the Tip Pool! In other words, which sources will contribute tips? You'll notice the following two sections: 'Your mapped roles' and ' Unassigned tips and receipts'.

⚠️If you would like to create your Tip Pool with Unassigned-only Contributors, please skip to step 8.

whocontributes_sections.png

5. Your mapped roles. For transactions that are assigned to Employees, you will need to select which Roles and Departments will be your Contributors. Contributors are usually customer-facing employees that gather tips, gratuities or collect payment during their shift.

⚠️ Contribute by a Role: The team members under the Role can be both 'Contributors' and 'Recipients' (in step 9). This step is to determine how much of the initial tips received will contribute to the Tip Pool to be divided out later across the team.

Example: Servers can contribute 100% of their tips and still receive 50% from that initial 100% that was put into the Tip Pool.

⚠️ Contribute by a Department: All roles within the Department will contribute the amount set into the tip pool.

Example: The FOH department contributes 50% of all collected tips to the pool.

Enter what percentage of the tips or sales they collected will contribute to the Tip Pool at this Location.

deptcontribution.png

  • Click on '+ Add Contributor' to include more Roles/Departments.
  • Click on the copy icon to duplicate any contributors, including their filters.
  • Click on the trash icon to remove any Roles/Departments from the list of contributors.

addcontributor.png

⚠️ You can have as many Contributors as there are Roles under that Location. 

6. With Toast, you can filter the tips received by Revenue Center, Dining Option, and Sales Category. These filters are to determine what amount of tips will go into the Tip Pool, before any redistribution calculations.

For each Contributor, you can set up these filters by clicking on the filter icon and selecting your filter rules.

assigned_filters_for_tips.gif

⚠️ The options available under Revenue Centers, Dining Options, and Sales Categories will depend on the specific setup on your POS.
⚠️ Note that filtering by Sales Category is ony available when Tip-in based on 'Sales' is selected.


Screen_Shot_2022-06-08_at_3.29.40_PM.png

7. Unassigned tips & receipts. For transactions that are not assigned to any employees, you will need to enter and select what percentage of tips or sales will go into the Tip Pool.

Screen_Shot_2022-06-08_at_2.25.18_PM.png

8. Unassigned-only Contribution. To create a tip pool that only considers unassigned tips (i.e. no set contributors, mobile takeout, delivery orders, or orders where no employee is ringing them through), click on the trash can icon Screen_Shot_2022-11-24_at_2.47.45_PM.png to remove 'Your mapped roles' contributors as an option:

trashciconunassigned.gif

9. With Toast, you can filter the tips for these unassigned transactions by Revenue Center, Dining Option, and Sales Category. You can set up these filters by clicking on the filter icon and selecting your filter rules.

unassigned_filters_toast.gif

⚠️ The options available under Revenue Centers, Dining Options, and Sales Categories will depend on the specific setup on your POS.
⚠️ Note that filtering by Sales Category is ony available when Tip-in based on 'Sales' is selected.


Screen_Shot_2022-06-08_at_2.45.21_PM.png

 

10. When finished, click on 'Next.'
Screen_Shot_2022-06-08_at_2.29.24_PM.png

11. Next, you'll need to select the fields on your POS that you wish to pull in tip data from. This will be the initial source to calculate the Location's total tips, which will then be divided out between your staff from there.

Check any boxes that apply, then click on 'Next.'

Screen_Shot_2022-06-08_at_5.14.55_PM.png

⚠️ These fields may vary depending on the specific setup on your POS. Hover your mouse over the question mark icons for more details about each option.

12. Then, in the dropdown determine how you'd like tips to be redistributed to your team. All distribution methods will reallocate tips based on employees' actual worked hours. Select any 1 of the 3 distribution options:
Screen_Shot_2022-06-08_at_3.37.29_PM.png

Click on the panels below to learn about each distribution type:

Equal Distribution

How Equal Distribution works:
Each person will receive a portion of the tips based on the hours they worked. Let's say the Tip Pool is $500 and employees worked a total of 25 hours.
$500 / 25 hours = $20 in tips per hour worked Server A: worked 10 hours and receives $200
Server B: worked 7 hours and receives $140
Food Runner: worked 8 hours and receives $160

Percentage

How Percentage Distribution works:
Each role group is entitled to a specific percentage of the Tip Pool. Each person who worked that role will then receive a portion of the tips based on the hours they worked.

Let's say the tip pool is $1000, Server distribution is set to 60% ($600) and Bartender distribution is set to 40% ($400).

Server A worked 8 hours and receives $240
Server B worked 12 hours and receives $360
Bartender worked 5 hours and receives $400

Note that since only 1 bartender worked, they will receive $400 regardless of the number of hours they work

Points Weighting


13.
Next, you will need to select your Receivers:

  • Click the dropdown and select a Department or specific Role.
  • Click on '+ Add Receiver' to include more Departments or Roles.
  • Click on the 'Trash' icon to remove any Departments or Roles from the list of receivers.

6201565fd6607.png

⚠️ You can have as many receivers as there are Departments and Roles under that Location, regardless if those Roles are already set up as Contributors (in step 6).

If you chose to use the 'Percentage' or 'Points Weighting' distribution methods, you will need to enter a percentage or amount of points beside each Department or Role.

Screen_Shot_2022-06-08_at_3.45.47_PM.png

⚠️ If using the 'Percentage' distribution, there will be a tally at the bottom to ensure that you are not under or over the 100% total. You will be unable to proceed unless your total is at 100% exactly. 

Screen_Shot_2022-06-08_at_3.44.00_PM.png

14. After you have set up which Departments and Roles will be receiving tips, click on 'Next.'

15. Lastly, you will be given an overview of how your Tip Pool will be set up. Here you can go back through any steps to make any changes needed, or click on 'Save my tip pool' to finalize it. 

Screen_Shot_2022-06-08_at_3.40.49_PM.png

Success! You've just created a Tip Pool.

Now you're ready to create more Tips Pools or access any of your Tip Pooling reports.


Setting up your Tip Pool - TouchBistro POS Integration Contribution

⚠️ To access the Tip Pool feature using POS Integration Contribution, you will require the following:

1. An Actual Sales integration with TouchBistro POS. (If you're not using a supported POS system, learn how to access the Manual Contribution option here.)

2. 7punches for time clocking or an Actual Labor integration with TouchBistro POS (since this feature relies on employees' worked hours in order to redistribute tips).

3. Have Role and Employee mapping completed. This will ensure that Employees will be assigned the correct tips, based on their hours and Roles.
⚠️ By default, Managers/Assistant Managers will have access to manage or edit the Tip Pool settings. However, Admins can change this by enabling or disabling the Manager Permission 'Can create and edit tip pools.'
To set up your Tip Pool :

1. Head to the Tip Pooling tab, and click on 'Create pool':

 

 

2. Select your Location, enter a name for your Pool, set your Calculation Frequency, and click Next.

The name is required since you'll later have the option to create multiple Tip Pools for the same Location.

details.png

By default, the Calculation Frequency will be set to Daily. Change this by clicking on How often are tips calculated: 'Daily', and select an new option from the dropdown menu:

dropwdownmenu.png

Set the date for which your last pay period ended, and we'll use this date to start pooling your tips. The date will automatically default to the last date of the pay period on your Time Clocking page, but you're welcome to adjust it as needed! :

Pro Tip!

We recommend that you align these dates with how you view pay periods to ensure accurate reporting.



selectdate.png

⚠️ If you want to create this Tip Pool for a specific Daypart,  select 'Dayparts' from the dropdown menu , and choose which Daypart will apply to this tip pool. If enabled, an additional column for Dayparts will be included on the Tip Pool report.

daypart_selection.png

3. Here, be sure to select the option 'Pull in tips automatically from my POS', then click on 'Next.'

Screen_Shot_2022-06-08_at_5.11.15_PM.png

4. Next, you will select who adds to the Tip Pool! In other words, which sources will contribute tips? You'll notice the following two sections: 'Your mapped roles' and ' Unassigned tips and receipts'.

⚠️If you would like to create your Tip Pool with Unassigned-only Contributors, please skip to step 7.

whocontributes_sections.png

5. Your mapped Roles. For transactions that are assigned to Employees, you will need to select which Roles and Departments will be your Contributors. Contributors are usually customer-facing employees that gather tips, gratuities or collect payment during their shift.

⚠️ Contribute by a Role : The team members under the Role can be both 'Contributors' and 'Recipients' (in step 9). This step is to determine how much of the initial tips received will contribute to the Tip Pool to be divided out later across the team.

Example: Servers can contribute 100% of their tips and still receive 50% from that initial 100% that was put into the Tip Pool.

⚠️ Contribute by a Department: All roles within the Department will contribute the amount set into the tip pool.

Example: The FOH department contributes 50% of all collected tips to the pool.

Enter what percentage of the tips or sales they collected will contribute to the Tip Pool at this Location.

deptcontribution.png

  • Click on '+ Add Contributor' to include more Roles/Departments.
  • Click on the copy icon to duplicate any contributors, including their filters.
  • Click on the trash icon to remove any Roles/Departments from the list of contributors.

addcontributor.png

⚠️ You can have as many Contributors as there are Roles under that Location. 

6.Unassigned tips & receipts. You will also need to enter what percentage of tips will go to the Tip Pool for transactions that are unassigned to any employees.

Screen_Shot_2022-06-08_at_4.48.04_PM.png

 

7. Unassigned-only Contribution. To create a tip pool that only considers unassigned tips (i.e. no set contributors, mobile takeout, delivery orders, or orders where no employee is ringing them through), click on the trash can icon Screen_Shot_2022-11-24_at_2.47.45_PM.png to remove 'Your mapped roles' contributors as an option:

trashciconunassigned.gif

8. When finished, click on 'Next.'

Screen_Shot_2022-06-08_at_4.39.51_PM.png



9.
From here, you'll need to select the fields on your POS that you wish to pull in tip data from. This will be the initial source to calculate the Location's total tips, which will then be divided out between your staff from there.

Check any boxes that apply, then click on 'Next.'

Screen_Shot_2022-06-08_at_5.18.48_PM.png

⚠️ These fields may vary depending on the specific setup on your POS. Hover your mouse over the question mark icons for more details about each option.

10.Then, in the dropdown determine how you'd like tips to be redistributed to your team. All distribution methods will reallocate tips based on employees' actual worked hours. Select any 1 of the 3 distribution options: Equal Distribution, Percentage, or Points Weighting.
Screen_Shot_2022-06-08_at_3.37.29_PM.png

Click on the panels below to learn about each distribution type:


Equal Distribution

How Equal Distribution works:
Each person will receive a portion of the tips based on the hours they worked. Let's say the Tip Pool is $500 and employees worked a total of 25 hours.
$500 / 25 hours = $20 in tips per hour worked Server A: worked 10 hours and receives $200
Server B: worked 7 hours and receives $140
Food Runner: worked 8 hours and receives $160

Percentage

How Percentage Distribution works:
Each role group is entitled to a specific percentage of the Tip Pool. Each person who worked that role will then receive a portion of the tips based on the hours they worked.

Let's say the tip pool is $1000, Server distribution is set to 60% ($600) and Bartender distribution is set to 40% ($400).

Server A worked 8 hours and receives $240
Server B worked 12 hours and receives $360
Bartender worked 5 hours and receives $400

Note that since only 1 bartender worked, they will receive $400 regardless of the number of hours they work

Points Weighting


11.
Next, you will need to select your Receivers:

  • Click the dropdown and select a Department or specific Role.
  • Click on '+ Add Receiver' to include more Departments or Roles.
  • Click on the 'Trash' icon to remove any Departments or Roles from the list of receivers.

6201565fd6607.png

⚠️ You can have as many receivers as there are Departments and Roles under that Location, regardless if those Roles are already set up as Contributors (in step 6).

If you chose to use the 'Percentage' or 'Points Weighting' distribution methods, you will need to enter a percentage or amount of points beside each Department or Role.

Screen_Shot_2022-06-08_at_3.45.47_PM.png

⚠️ If using the 'Percentage' distribution, there will be a tally at the bottom to ensure that you are not under or over the 100% total. You will be unable to proceed unless your total is at 100% exactly. 

Screen_Shot_2022-06-08_at_3.44.00_PM.png

12. After you have set up which Departments and Roles will be receiving tips, click on 'Next: One last review.'

13. Lastly, you will be given an overview of how your Tip Pool will be set up. Here you can go back through any steps to make any changes needed, or click on 'Save my tip pool' to finalize it.

Screen_Shot_2022-06-08_at_3.40.49_PM.png

Success! You've just created a Tip Pool.

Now you're ready to create more Tips Pools or access any of your Tip Pooling reports.


Setting up your Tip Pool - Manual Contribution

If you do not use a supported POS or want to use tip data from a specific source, you can still use the Tip Pooling feature. Here's how you can set up your Tip Pool and enter your tip data manually into 7shifts for redistribution.

⚠️ To access the Tip Pool feature using Manual Contribution, you will require the following:

1.  7punches for time clocking or an Actual Labor integration with a POS (since this feature relies on employees' worked hours in order to redistribute tips).

2. Have Role and Employee mapping completed. This will ensure that Employees will be assigned the correct tips, based on their hours and Roles.
⚠️ By default, Managers and Assistant Managers will have access to manage or edit the Tip Pool settings. However, Admins can change this by enabling or disabling the  manager permission 'Can create and edit tip pools.'
To set up your Tip Pool:

1. Head to the Tip Pooling tab, and click on 'Create pool':

 

2. Select your Location, enter a name for your Tip Pool, set your Calculation Frequency, and click Next.

The name is required since you'll later have the option to create multiple Tip Pools for the same Location.

details.png

By default, the Calculation Frequency will be set to Daily. Change this by clicking on How often are tips calculated: 'Daily', and select a new option from the dropdown menu:

dropwdownmenu.png

Set the date to start pooling your tips. The date will automatically default to the last date of the pay period on your Time Clocking page, Set the date for which your last pay period ended, and we'll use this but you're welcome to adjust it as needed! :

Pro Tip!

We recommend that you align these dates with how you view pay periods to ensure accurate reporting.



selectdate.png

⚠️ If you want to create this Tip Pool for a specific Daypart,  select 'Dayparts' from the dropdown menu , and choose which Daypart will apply to this tip pool. If enabled, an additional column for Dayparts will be included on the Tip Pool report.

daypart_selection.png

3. Then, click on 'Next.'

Screen_Shot_2022-06-08_at_5.15.28_PM.png

 

4. Then, in the dropdown determine how you'd like tips to be redistributed to your team. All distribution methods will reallocate tips based on employees' actual worked hours. Select any 1 of the 3 distribution options:

Screen_Shot_2022-06-08_at_3.37.29_PM.png

Click on the panels below to learn about each distribution type:


Equal Distribution

How Equal Distribution works:
Each person will receive a portion of the tips based on the hours they worked. Let's say the Tip Pool is $500 and employees worked a total of 25 hours.
$500 / 25 hours = $20 in tips per hour worked Server A: worked 10 hours and receives $200
Server B: worked 7 hours and receives $140
Food Runner: worked 8 hours and receives $160

Percentage

How Percentage Distribution works:
Each role group is entitled to a specific percentage of the Tip Pool. Each person who worked that role will then receive a portion of the tips based on the hours they worked.

Let's say the tip pool is $1000, Server distribution is set to 60% ($600) and Bartender distribution is set to 40% ($400).

Server A worked 8 hours and receives $240
Server B worked 12 hours and receives $360
Bartender worked 5 hours and receives $400

Note that since only 1 bartender worked, they will receive $400 regardless of the number of hours they work

Points Weighting

5. Next, you will need to select your Receivers:

  • Click the dropdown and select a Department or specific Role.
  • Click on '+ Add Receiver' to include more Departments or Roles.
  • Click on the 'Trash' icon to remove any Departments or Roles from the list of receivers.

6201565fd6607.png

⚠️ You can have as many receivers as there are Departments and Roles under that Location.

If you chose to use the 'Percentage' or 'Points Weighting' distribution methods, you will need to enter a percentage or amount of points beside each Department or Role.

Screen_Shot_2022-06-08_at_3.45.47_PM.png

⚠️ If using the 'Percentage' distribution, there will be a tally at the bottom to ensure that you are not under or over the 100% total. You will be unable to proceed unless your total is at 100% exactly. 

Screen_Shot_2022-06-08_at_3.44.00_PM.png

6. After you have set up which Departments and Roles will be receiving tips, click on 'Next.'

7. Lastly, you will be given an overview of how your Tip Pool will be set up. Here you can go back through any steps to make any changes needed, or click on 'Save my tip pool' to finalize it.

Screen_Shot_2022-06-08_at_4.54.59_PM.png

You've just created a Tip Pool! Now you can enter your tip data into 7shifts.

⚠️ Managers and Assistant Managers will require the 'Can add and edit tip contributions' Manager Permission to be able to enter tip data into the Tip Pool.

8. To enter your tip data, head to the Tip Pooling tab. Next to the appropriate Tip Pool, click on 'Add Tips.'

 

9. Then, enter your Tip data under the appropriate date. You can enter data for other weeks by using the date selector.

⚠️ If you enabled the Dayparts option while setting up your Tip Pool, you'll be able to enter tips for the selected Dayparts separately.

10. Be sure to hit 'Save' before leaving this page or changing the week.

Now you're ready to create more Tips Pools or access any of your Tip Pooling reports.


Managing / Editing multiple Tip Pools 

1. As an Admin, you can access your Tip Pool dashboard by heading to the Tip Pooling tab:

 

You can also sort your list of Tip Pools by name or Location.

Screen_Shot_2022-11-16_at_10.01.34_AM.png

2. Click on the 'Manage' icon to Edit, Delete, or view the details for an existing Tip Pool. 

3. Simply click on 'Create Pool' to create an additional Tip Pool.

6201566b26003.png

⚠️ You can set up multiple Tip Pools under the same Location.
Was this article helpful?
1 out of 5 found this helpful