The Tip Distribution Logic Page is a feature for setting up, managing, and customizing an organization's tip-sharing and tip-pooling logic.
Page Navigation and Functions
Access the Tip Distribution Logic page from the left-side menu (pie chart icon) to manage Tip Sharing Rules and Tip Pools.
Filtering and Sorting
Filter Rules: Use the "Status" dropdown to select active, inactive, or all created rules.
Sort Rules: Use the "Sort By" dropdown to sort by location, name, effective date, or created date.
Rule Management
View/Edit: Click on a rule/pool or the three dots on the right of its row.
Delete/Deactivate: Options are available within the rule management view.
Duplicate: Creates a copy of the rule or tip pool in the current location.
Copy to Locations: Copies the rule to a different store.
Note: Rule or tip pool deactivation can be scheduled to plan future changes without disrupting the current configuration.
💡Tip: You can schedule the deactivation of a rule or tip pool to plan changes to your structure without disrupting your current setup. Read How to Edit Rules Mid-Pay Period for more information.
Differences Between Tip-Sharing and Tip Pooling
Tip-Sharing Rules redistribute a portion of tips from tip earners to non-tip earners. For example, tip sharing might involve transferring a percentage of tips from servers to cooks or from bartenders to barbacks.
Tip Pools: are designed to split tips among tip earners within a specific group.
Order of Operations
All Tip-Sharing Rules are calculated simultaneously.
All Tip Pools are calculated simultaneously after all Tip-Sharing Rules are complete.
This calculation order is fixed and cannot be altered.
| Tip Pools | Tip Sharing Rules |
Function | Tip pools allow you to distribute a pool of tips among a job code or a group of job codes. | Distribute a percentage of tips from one group of job codes to another |
Use Cases | Distribute a percentage of tips from one group of job codes to another | Good for sales-based rules, directly tipping out support staff, and rewarding tip earners based on their personal workloads. |
Example | Two bartenders; one is ringing sales, and the other is at the well. All the tips are pooled together, and each bartender takes a cut of the pool. | Server tips out 3% of food sales to the kitchen and 2% of drink sales to the bar, each server retains the rest of their tips. |
Tip/Sharing Rules Explained
Tip-Sharing rules are used to distribute a percentage of tips from one job code to another, typically from a sales-generating role to a support role.
Example:
A rule might distribute 3% of credit card tips, gift card tips, and gratuity service charges from Servers to Cooks.
A rule might distribute tips equivalent to 1% of drink sales from bartenders to barbacks.
Tip Pools Explained
Tip pools allow you to share tips within a group of job codes. You can also control whether or not a job code in a pool will receive tips from the pool or how much one job code receives from the pool in relation to another. Tip Pools can be an effective tool for incentivizing teamwork.
Example:
A Tip Pool for Bartenders to evenly distribute tips from the bar among the group.
Set up a Tip Pool that includes both Cooks and Servers, allowing their tips to be shared collectively.
Tip pools are most effective when used to distribute tips within a group of job codes, such as Bartenders or Event Servers. For instance, you can create a Tip Pool that includes all Cooks and Servers, allowing both roles to share pooled tips.
⚠️ However, setting up a Tip Pool exclusively for a position that does not ring sales, such as Cooks wouldn't work, as there would be no contributions to the pool without another group generating tips to add to it. ⚠️
Learn more about Tip Sharing Rules and Tip Pools:
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