If an employee receives more or less tips than their expected take-home amount on an earned tip access payout, a reconciliation process may be in effect. This occurs when adjustments are made to time punches, sales, or shift job codes after a payout is made.
How Reconciliation Works
Whenever we see that the take home for a given payout's date range no longer matches the Gross Amount that was paid out, we have to reconcile by adjusting the following payout in the pay period.
If the take home is lower than what was paid out, it represents an overpayment, and the following payout will be lowered to adjust. | If the take home is higher than what was paid out, it represents an underpayment, and the following payout will be raised to adjust. |
Your staff might also notice that the take-home amount changes after the day has finished. The tip totals presented in the Employee App may change based on refunds and shift adjustments processed before the end of your pay period. |
What Triggers a Reconciliation?
Many things can cause an employee’s take-home number to be recalculated, such as:
Custom team adjustments that are made after employees have been paid out.
Edits to the tip-sharing rules and tip pools that affect previously paid-out days.
Delays with the raw data from your POS.
A sale edit or refund.
Time punch corrections to hours or job codes.
Voided Peer-to-Peer transactions.
Since payouts are based on the most recent calculations when any of the above scenarios happen and the system updates with new calculations, we look back at the entire pay period for any overpayments or underpayments on past payouts.
Do I Need to Correct Errors After Payouts Manually?
Some of these items, like refunds, are unavoidable, but most can be managed before a payout is made to reduce the need for reconciliation. Unlike most systems that require file uploads or spreadsheet management to notify the software when an adjustment has been made, any mistakes caught after a payout will be automatically factored into the next payout in the pay period.
This is designed to relieve some managerial pressure from needing to have the data perfect each day. Any amounts that can not be reconciled within the pay period will be automatically included in the employee’s paycheck.
Verifying Employee Payout Adjustments
To understand if an employee's payouts have been adjusted due to a reconciliation, you can confirm by going to the ETA Page, Overview tab, and clicking on the amount paid out (the blue numbers). You will get the following display window.
From the Amount Paid Out Detail, you can easily view reconciliations payout by payout by looking at the differences between the Net Amount (the amount the employee was paid out) and the Take Home (the most recent take-home calculation for the days included in the payout).
The Gross Amount column shows how much the employee received before fees. The Take Home column shows the correct amount after the breakdown has been reprocessed.
In the example above, Daniel's take-home from 1/23 at the time of the payout on 1/24 was $138.22. After that payout, we can see that her take-home for 1/23 has been recalculated and is now $15.99 lower, $122.23. TipHaus automatically reconciles the overpayment by lowering her following payout by $15.99, from $90.90 to $74.91.
Still have questions? Contact our customer success team here or click the Chat icon in the bottom-right corner of your Client Dashboard