7shifts 101: Tip Pooling

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What is Tip Pooling?

With 7shifts, you can combine your custom tip rules with your POS or 7punches data to automatically calculate tip distribution. 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.

This article provides a general introduction on how to get started with Tip Pooling. Find resources and learn more on how to use it below.

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Web: Tip Management > Tip Pooling.

Things to Know 

  • Time Clocking must be enabled to setup Tip Pooling.
  • System Requirements: Tip Pooling Settings are only accessible on the web app.
  • Tip Pooling for 7punches: Tip Pooling is available for those using tip data from 7punches. However, only employees' Declared Tips will be included into the Tip Pool calculations.
  • Rule changes: the open pay period will be updated even if the rule changed halfway through the pay period, or, if a past pay period was opened after the rules had been changed. 
  • Deactivated employees are removed from the open pay period, or if a past pay period was reopened after their deactivation. This will affect your report figures.

Enable Tip Pooling in Your Account

By integrating Time Clocking with Tip pooling, accurately track employee work hours and associate tip contribution with those hours.

To get started, enable Time Clocking and Tip Pooling for your Account:

  1. Enable Time Clocking by heading to Time Clocking > Start Time Clocking. Follow the prompts to set it up according to your preferences, or follow the steps here:

  2. Enable Tip Pooling by headings to Settings (or hover over your profile icon) > Add-ons.

  3. Select the Tip Pooling.
  4. Admins/Managers/Assistant Managers can click Enable Tip Pooling to start a free trial and try out the feature. Only Admins will be able to proceed with purchasing the Tip Pooling add-on at the end of the trial.

  5. Select Go To Tip Pooling.

  6. Going forward, this tool will also be available in the navigation bar > Tip Management > Tip Pooling.


How to Set Up Tip Pools: Automatic or Manual

7shifts offers both automatic and manual tip pooling options to accommodate different POS systems and business needs. Here’s a breakdown of the differences between the two contribution methods for you to choose from: 

Considering switching your POS system? It is important to understand how this will impact your tip pooling process. Switching from a POS that supports automatic tip data pulling to one that doesn’t will require you to set up manual tip pooling, which involves manual data entry.
  • Automatic Contribution:

    Restaurants using a supported POS integration can automatically calculate and distribute tips based on predefined rules and tip data imported from your POS system. If you are using the following POS systems, you can take advantage of automatic tip pooling. Here's how to begin setting it up:

    Toast POS
    TouchBistro POS
    GoTab POS
    Square POS
    Revel POS
    Qu POS (Coming Soon!)

  • Manual Contribution:

    Restaurants that do not use a supported POS or those that want to use tip data from a specific source,  can use this method to manually enter your daily tip data into 7shifts for redistribution among your employees. Follow the link below to begin setting up your tip pool:

    Manual Contribution


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