Tip Pooling Overview

• Media Lives In Drawer must be enabled in Media Maintenance for cash media

Tip Pooling allows tips to be distributed fairly in an environment where certain groups of employees contribute to the service of a customer, but are not the ones responsible for receiving tips. This differs from basic tip sharing in that the tip pool can be based on amounts other than tips, and the employee's contribution amount (amount given) can differ from their distribution amount (amount received).

Tip Pools consist of both contribution and distribution groups. Each tip pool has contributors who contribute a different amount to the pool and may or may not receive a distribution from the pool. These contributors and distributors are selected by their job code(s) as configured in Employee Maintenance.

Contributions are configured for each job code selected in the Contributors tab. Contributions are only taken while an employee is clocked in to a job code included in the Contributors list for the pool during the pool’s defined time period. Contributions can be made by sales or by major department group. An explanation of each contribution type is listed below.

• A percentage of Gross Sales. Gross sales is defined as the total dollar amount of sales, not including tax, coupons, or discounts.
• A percentage of Net Sales. Net sales is defined as Gross Sales minus discounts, coupons, and VAT taxes.
• A percentage of Credit Card Tips.
• A percentage of the All Tips Received (not including any tips received as part of tip pool distribution).
• A percentage of one or more major groups (major groups can be configured in Department Maintenance). If multiple major groups are selected, each major group can have a different percentage configured.

Any amount owed to the tip pool is considered to be owed by the employee, even if that amount exceeds his/her tips received for the night. The employee would contribute to the pool even if it is out of their own pocket. This can occur if a percentage of sales is set, and little or no tips were received.

Distributions are configured for each job code selected in the Distributors tab. Distributions are only received when an employee is clocked in to a job code included in the Distributors list for the pool during the pool’s defined time period. Tips can be distributed evenly among all job codes, by hours worked, or as a mix of both options. Total distributions must add up to 100% regardless of the distribution type selected. An explanation of each distribution type is listed below.

• Distribute evenly across all selected job codes will divide the contributions evenly among all job codes. For example, if two job codes are selected, each will receive 50% of the tip pool.
• Distribute by hours worked across all selected job codes will distribute tips based on the number of hours worked by employees within the selected job codes. For example, an employee who works 8 hours within the Time in Effect will receive a larger share of the tip pool than an employee who only works 3 hours.
• Distribute based on job code allows the user to set the distribution amount per job code selected, and requires the user to enter a distribution amount by percentage of pool, even distribution or hourly.

The Time in Effect of each tip pool can be set within Tip Pooling Maintenance and can vary for each tip pool configured.

A list of reports affected by Tip Pooling is shown below.

• The Employee Cashout Report must be used rather than Terminal Cashout Report when using tip pooling.
• Effective Wage Report
• Employee Wage Report

1. Open the Back Office.
2. Click the Maintenances icon.
3. Click Tip Pooling.
   

• Use Tip Pooling Maintenance to Add a Tip Pool