Tip Pool Introduction.

Tip pooling is a tool used to take contributions from contributors and distribute them to recipients based on the tip pool settings. This document will provide a brief explanation of Contributors and Recipients and how the distribution works.

Contributors

Employees working jobs are the only entities that can contribute to tip pools. In other words, an area or sales category cannot contribute to a tip pool. For example, an employee working as a “Server” can contribute 5% of their sales from the “Food” sales category to a tip pool.

Recipients

Employees working jobs are the only entities that can be recipients of a tip pool.

The pro-rata recipient feature allows each employee within a given job to receive a distribution that is proportional to the amount of hours they worked within the tip pool defined distribution period.

How Employee Attendance Applies

Sales data associated with employees when they are clocked-in as a certain job will be attributed to that job. As it relates to pro-rata tip distribution calculations, only the hours worked within the tip pool distribution period will be considered.

The following example attempts to illustrate the above points.

Open

To continue reading on how to set up tip pools, please navigate to the tip pool setup documentation.