Syncing Tips to Payroll

Accounts using 7punches or supported POS integrations will be able to send their POS tip data to 7shifts. From there, this information can be included with your time-clocking data when processing payroll.

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SKIP AHEAD TO:
Enabling the Tip Sync setting with an Integration
Enabling Tip Tracking with 7punches
Including Tip Pooling data
⚠️ This feature may require an upgrade from your current plan.

⚠️This feature is available on The Works+ and requires both an eligible POS system + Payroll integration.

⚠️ Available to accounts using 7punches, or with POS integrations that support credit card tips, here is a list of eligible POS systems:
Aloha POS
Brink POS
Dinerware POS
Future POS - Shift4
Harbortouch POS
Micros 3700 POS
POSitouch POS - Omnivore
POSitouch POS - Shift4
Qu POS
Restaurant Manager POS - Shift4
Square POS
Squirrel POS
Silverware POS
Toast POS
TouchBistro POS

⚠️ The following is a list of eligible Payroll Integrations or Exports:
ADP Run (US) Integration
ADP WFN (US) integration
Gusto Payroll Integration
ADP WFN (US) Export
Paychex Export
UKG Pro Export


Enabling the Tip Sync setting with an Integration

⚠️ To sync Tips to Payroll, you will first need to:

1. Have Actual Labor turned on in your POS integration settings.

2. Have a supported Payroll Integration or Export enabled.

3. Map your Roles and Employees. (The following POS integrations will be exempt from Role mapping: Squirrel and TouchBistro).

1. As an Admin, head over to More > Integrations > My Integrations and click on your Payroll provider, which should have been activated already.

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2. Then, click on 'Settings.'

3. Under the 'Tip Export' tab, you will see two options: 'Paid Tips' and 'Tips to be paid'.

Click on the slider button to enable 'Paid Tips' and/or 'Tips to be Paid' to determine how you'd like to bring in your tips data into 7shifts.

4. Paid Tips- If 'Paid Tips' is enabled, please choose the tip sources from your POS that you want to include in the dropdown shown below.

These will be the tips that have already been paid to employees, outside of payroll (for example: Declared tips), and is typically used in order to deduct taxes. Each selection will be added together and displayed when processing payroll.

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⚠️ Tip Sources

  • Tip sources will vary by POS system, and Payroll provider.
  • Please note the following definitions when selecting your Tip Sources:

Total = Credit Card + Declared + Gratuity (a calculation done without our Tip Pooling feature)

Tips Out = Distributed tips from our Tip Pooling feature

5. Tips to be paid through payroll - If 'Tips to be paid through payroll' is enabled, please choose whether you want to include or deduct certain tip sources.

These will be the POS tips that are still owed to employees, that will be paid through payroll. Each selection will be added together and displayed when processing payroll.



Next, select which tip sources you want to be included, and which ones you wish to deduct. This allows you to customize the calculation of tips that will be exported to payroll. 

6. Click on 'Save' when finished.

Once enabled, 7shifts will pull in the tip data from your POS. This information will be included when processing payroll if you are using a supported Payroll Integration,or within a new column in your CSV if using a supported Payroll Export.


Enabling Tip Tracking with 7punches

If you are using 7punches for Time Clocking, you can allow employees the ability to declare their tips when punching out through Tip Tracking.

Click here to learn more about enabling this setting!


Including Tip Pooling data

If using the Tip Pooling feature, the tips being calculated and redistributed can be included when processing your tip data to payroll. There are three options for how you can have this information processed with your payroll data.

7shifts will include/exclude your Tip Pooling data when processing payroll if you are using a supported Payroll Integration or within a new column in your CSV if using a supported Payroll Export:

Option 1: Payroll Integrations - To Include Employees' tips earned from Tip Pooling:

Under the 'Tips to be paid through your payroll' setting, select the 'Tips Out' option if you wish to include these tips with other tip categories that will need to be paid out to employees through your payroll system.

Option 2: Payroll Integrations -To Exclude Employees' tips earned from Tip Pooling:
Under the 'Paid Tips' setting, select the 'Tips Out' option if you wish to not include these types of tips. This is selected in cases where the tips earned via tip pooling DO NOT need to be paid out to employees through your payroll system but still need to be tracked for tax purposes.

⚠️ After you've made your selection between these two options be sure to click on 'Save.'

 

Option 3: To Include tips in the Worked Hours and Wages Report
Customers (i.e. who are using 7punches to declare tips) may export their Worked Hours and Wages report and use it to manually input payroll numbers or to format the spreadsheet for payroll exports.

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Click here to learn more about Tips in the Worked Hours and Wages Report!
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