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Tip Pools & Gratuity

Understand how tips are collected and distributed.

Overview​

Your restaurant may use one of several tip models:

  • Individual Tips - Keep what you earn
  • Tip Pool - Tips shared among team
  • Hybrid - Combination of individual and pool
  • Points-Based - Distribution based on hours and position

How Tips Are Collected​

Credit Card Tips​

  1. Customer adds tip at payment
  2. Tip automatically recorded
  3. Assigned to server/bartender
  4. Distributed per tip model

Cash Tips​

You must declare cash tips:

  1. Go to Time Clock > Declare Tips
  2. Enter cash tip amount
  3. Confirm total
  4. Tips recorded for shift

When to Declare​

  • At end of each shift
  • Before clocking out
  • System will prompt you

Tip Distribution Models​

Individual Tips (No Pool)​

Keep 100% of tips from your tables:

Your tips today:
Credit Card:    $85.00
Cash declared:  $45.00
────────────────────────
Total:         $130.00  (100% yours)

Full House Pool​

All tips combined and split equally:

Total tip pool:   $850.00
Staff sharing:    10 people
Your share:       $85.00

Points-Based Pool​

Tips distributed by hours × position rate:

Position Points:
  Server:     1.0 point/hour
  Bartender:  1.0 point/hour
  Busser:     0.5 point/hour
  Runner:     0.6 point/hour

Example:
  You worked: 6 hours as server
  Your points: 6.0
  Total pool points: 45.0
  Your share: 6.0 ÷ 45.0 × $900 = $120.00

Percentage Split​

Tips split by role percentage:

Total Tips:     $1,000
Server share:   70% = $700 (split among servers)
Support share:  30% = $300 (split among support)

Viewing Your Tips​

During Shift​

Check tips any time:

  1. Tap your Profile icon
  2. Select Today's Tips
  3. See running total

End of Shift​

When clocking out:

┌─────────────────────────────────────┐
│  YOUR TIPS TODAY                    │
├─────────────────────────────────────┤
│                                      │
│  Credit Card Tips:     $95.50       │
│  Declared Cash Tips:   $42.00       │
│  ─────────────────────────────────  │
│  Gross Tips:          $137.50       │
│                                      │
│  Pool Contribution:   -$27.50 (20%) │
│  ─────────────────────────────────  │
│  Your Net Tips:       $110.00       │
│  Pool Share:          +$18.75       │
│  ─────────────────────────────────  │
│  TOTAL TIPS:          $128.75       │
│                                      │
└─────────────────────────────────────┘

Weekly/Pay Period​

View tip history:

  1. Go to Time Clock > Tip History
  2. Select date range
  3. See all tips by day

Tip Pool Contribution​

How Contribution Works​

If your restaurant uses tip pooling:

  1. Percentage taken from your tips
  2. Goes into shared pool
  3. Pool split among eligible staff
  4. You receive pool share back

Example Calculation​

Your credit card tips:   $100.00
Pool contribution (20%): -$20.00
Your kept portion:        $80.00
Pool share received:     +$15.00
─────────────────────────────────
Net tips:                 $95.00

Typical Pool Participants​

PositionUsually PoolsUsually Individual
Servers✓
Bartenders✓
Bussers✓
Food Runners✓
HostsSometimes
KitchenRarely✓
Managers✗N/A

Auto-Gratuity​

What is Auto-Gratuity?​

Automatic gratuity added for:

  • Large parties (typically 6+)
  • Special events
  • Catering orders

How It Works​

  1. System detects party size
  2. Auto-gratuity (e.g., 20%) added
  3. Shown clearly on check
  4. Customer can add additional tip

Example​

Subtotal:          $250.00
Tax:                $20.63
Auto-Gratuity (20%): $50.00
─────────────────────────────
Total:             $320.63

Additional tip: $______

Service Charges​

Service Charge vs Tip​

Service ChargeTip
Goes to businessGoes to staff
Taxable income for businessTaxable for employee
Can cover overheadDirect to servers
Not always to staffAlways to staff
info

Service charges and tips are handled differently for tax purposes. Check with your manager about how service charges are distributed at your location.

Tip Disputes​

If You Think Tips Are Wrong​

  1. Check your tip history
  2. Compare to receipts if available
  3. Note specific discrepancy
  4. Speak with manager
  5. Manager can review and adjust

Common Issues​

IssueResolution
Missing credit card tipCheck closed checks
Pool share seems lowVerify hours/points
Cash tips not recordedRe-declare before pay period close

Tip Reporting​

Tax Requirements​

Tax Declaration

All tips are taxable income and must be declared. Failure to declare tips can trigger IRS audits for both you and the restaurant. The system may prompt you if declared cash tips fall below the 8% minimum threshold.

Tips are taxable income:

  • All tips must be declared
  • System reports to payroll
  • Shows on pay stub
  • Included in W-2

Voice Commands​

TaskSay
Check tips"Hey Maximus, what are my tips today?"
Declare tips"Hey Maximus, declare $45 in cash tips"
Tip history"Hey Maximus, show my tips this week"

FAQ​

When do I get my tips?​

  • Cash tips: Usually same day or end of shift
  • Credit card tips: Added to paycheck or separate payout per policy

Why did my pool share change?​

Pool shares vary based on:

  • Total tips collected
  • Number of people working
  • Hours worked
  • Position points

Can I opt out of tip pool?​

Typically no - tip pool policies apply to all. Check with management.

Are tips from delivery apps pooled?​

Depends on policy. Some include delivery tips, some don't.

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