Tip Management Overview

7shifts Tip Management Overview provides a unified dashboard to track earned tips and reconcile payments with your payroll system.

Things To Know

• Tip tracking follows your 7shifts pay periods instead of separate tip periods to ensure consistency across the platform.
• Historical unpaid tips from a previous pay period will not carry over into the current view as a cumulative total.
• Changes made to Tip Pool settings apply only to the current and future pay periods; historical data remains unchanged.
• Employees view Estimated Tips on their mobile dashboard, which reflects Earned Tips.

Tip Management Overview 

Welcome to your Tip Overview! Located under Tip Management > Overview.

The daily values you see here update in real-time to give you a snapshot of the live tip amounts earned by, paid to, and owed to your team. Only Active Employees will appear in the Tip Management Overview. Inactive employees will not surface here.

Earned tips: The total amount of tips earned by the employee in the selected pay period. Earned tips can be configured here.

Paid on shift: The total amount of tips paid to the employee outside of 7shifts. 

Paid in Tip Payout: The total amount already paid to the employee through Tip payouts. 

Paid on payroll: The total amount of tips paid to the employee via payroll during this time frame.

Owed tips: The outstanding tip total owed to the employee. Owed tips is calculated by Earned Tips - Paid on shift - Paid in Tip Payout - Paid on Payroll. 

Reconciling Tips Paid Outside of 7shifts

Step 1: Reconcile Cash Tips

Record any tips paid in cash to employees during the pay period immediately.

1. Navigate to Tip Management Overview in the 7shifts web app.
2. Click the Mark tips as paid button at the top of the dashboard.
3. Select Paid in cash as the Payment Source.
4. Select Mark all tips as paid to clear the total balance, or enter exact amounts for individual employees.
5. Click Add Tips to submit and apply the payment to the ledger.

6. These will now appear in the Paid on shift column on the Overview. 

   

Step 2: Export Payroll to External Provider

Once cash tips are reconciled, run your payroll export for the ended pay period.

• The export pulls the Owed Tips total.
• Use this export to tell your external payroll system how much to pay out to employees.

Step 3: Record External Payroll Payments

After your external payroll is processed, you must record those payments in 7shifts to clear the ledger balance.

1. Navigate to Tip Management Overview and use the date selector to choose the pay period where tips were paid.
2. Click the Mark tips as paid button.
3. Select External Payroll as the Payment Source.
4. Select Mark all tips as paid or enter specific amounts per employee based on your payroll report.
5. Click Add Tips to submit and apply the payment to the ledger.

6. These will now appear in the Paid on payroll column on the Overview.

   

Correcting Entry Errors

If an incorrect tip amount or overpayment is recorded, 7shifts allows you to balance the ledger using negative values.

1. Navigate to Tip Management Overview and select the pay period where the error occurred.
2. Click Mark tips as paid.
3. Select the same Payment Source used for the original incorrect entry.
4. In the Amount paid field, enter the negative amount needed to correct the balance (e.g., "-20.00"). Entering a negative amount will subtract that value from the employee's total in the 7shifts ledger, offsetting the previous overpayment.
5. Click Add Tips to apply the correction.

Reconciling with Tip Payouts or 7shifts Payroll

Automated payment methods in 7shifts reduce the need for manual reconciliation.

• 7shifts Tip Payouts: Sending a payout batch automatically deducts those tips from the employee's owed balance in the ledger. Paid amounts appear in the Paid in tip payout column.

  

  ⚠️  Reporting: The Paid on Tip Payouts column on the Worked Hours and Wages report only calculates and displays as a weekly sum. Therefore, they will not appear in the Worked Hours and Wages report if you run it for any period less than a full week, nor will they be included in the corresponding CSV export, as the export does not support weekly sums.

• 7shifts Payroll: Owed tips from the ledger automatically populate in 7shifts Payroll as "Tips to be Paid." Any tips already marked as paid (such as cash or Tip Payouts) appear as "Tips already paid" for tax reporting.

  

Employee View (Estimated Tips)

•  Employees can view their "Estimated Tips" on the mobile app, which reflects the "Earned Tips" total seen by Managers on the web.

Admin/Manager Web View: 

Employee Mobile Dashboard View

FAQ

Next Steps

To view the detailed breakdown of an individual employee's tips, click anywhere on that Employee's row in the dashboard. For more information on what each field in the breakdown means, see this article: Employee Tip Breakdown.

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