Tip Pooling for Square POS


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 with Square, please continue on to the next section.

⚠️ Prerequisites

⚠️ To access the Tip Pooling feature using POS integration Contribution, you will require:

  • An Actual Sales integration with Square POS. (If you're not using a supported POS system, learn how to access the Manual Contribution option here.)
  • 7punches for time clocking or an Actual Labor integration with Square POS (since this feature relies on employees' worked hours in order to redistribute tips)
  • 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.'


How to Setup Tip Pooling for Square POS

  1. In the top navigation bar, hover over 'more' and select Tip Pooling. Once on the Tip Pooling page, select Create a tip pool

  2. Select your location, enter a name for the tip pool and select Next

  3. Next, select Pull in tips automatically from my POS and select Next

  4. Select the desired fields on your POS you wish to pull tip data from. This will be the initial source to calculate the Locations total tips, which will then be distributed amongst your staff

  5. For transactions that are assigned to Employees, you will need to select which roles are Contributors to the pool. 

    ℹ️ Note

    The team members under these Roles can be both 'Contributors' and 'Receivers' (in step 9). This step is to determine how much of the initial tips collected will contribute to the Tip Pool to be divided out later across the team.

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

  6. Enter the percentage of their tips or sales that will be contributed to the pool for this location

    You can add more contributors by clicking the + Add contributor button.
    To quickly duplicate a contributor contribution amount and source, click the Copy Icon Screen_Shot_2022-08-12_at_8.42.06_PM_copy.png

  7. For transactions not assigned to any employees, you will need to select the percentage of tips or sales that will go into the pool at this location
  8. Next, you can determine how you'd like the tips to be distributed to to recipients. All distribution methods will reallocate the tips based on employees' actual worked hours. Select any 1 of the 3 following options: Equal Distribution, Percentage, or Points Weighting

    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


    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
  9. Select the receivers of the tips by selecting the desired Departments or Specific Roles

  10. If you opted for Percentage or Points Weighting distribution, you can enter the percentage or amount of points beside each Department/Role. When you're ready, select Next 
  11. You'll now see an overview of how your Tip Pool is set up. Here if you spot anything that needs changed, you can go back to any step or click Save my tip pool to finalize it

Success! You've created a tip pool


Q: How frequently are the tips or sales calculated?

A: The tips are calculated daily

Q: What Filters are available for Contributors?

A: At this time, no filters are supported


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