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Tips & Gratuity

Handle gratuities correctly and efficiently to maximize your earnings and stay compliant.

Overview​

Restaurant Revolution supports multiple tip types:

TypeDescriptionTracked By
Card TipsTips on credit/debit transactionsAutomatic
Cash TipsCash left by customersSelf-reported
Tip PoolShared tips among staffSystem calculated
Auto-GratuityAutomatic tip for large partiesSystem applied

Card Tip Options​

When processing card payments, customers see tip suggestions:

OptionPercentageExample ($50 check)
Standard18%$9.00
Good Service20%$10.00
Excellent22%$11.00
CustomAny amountCustomer enters
No Tip0%$0.00

Tip percentages are calculated on the pre-tax subtotal.

Adding Tips​

At the Payment Terminal​

  1. After payment amount is approved
  2. Customer sees tip prompt on screen
  3. They select percentage or enter custom amount
  4. Tip is added to the authorized total
  5. Final amount is captured

After the Fact (Signed Slips)​

If using signed paper slips with tip line:

  1. Go to Transaction History
  2. Find the transaction (search by table, time, or amount)
  3. Tap "Adjust Tip"
  4. Enter the tip amount from the signed slip
  5. Tap Save
24-Hour Deadline

Tips must be adjusted within 24 hours of the transaction before the batch closes. After this window, you will lose the tip amount and it cannot be recovered.

Voice Command​

"Hey Maximus, adjust tip on table 5 to $15"

Cash Tips​

Cash tips require manual tracking:

Collecting Cash Tips​

  1. Receive cash directly from customer
  2. Keep separate from your bank/float
  3. Track total through your shift

Declaring Cash Tips​

At end of shift:

  1. Go to Time Clock > Clock Out
  2. When prompted, select "Declare Tips"
  3. Enter your total cash tips
  4. Review and confirm
  5. Complete clock out

Why Declare?

  • Required for tax reporting
  • Needed for tip pool calculations
  • Protects you legally

Tip Pool / Tip Out​

If your restaurant uses tip pooling:

How It Works​

  1. All tips (card + declared cash) go into the pool
  2. System calculates each person's share
  3. Distribution based on hours worked and role
  4. You receive your share with your paycheck or cash out

Common Tip Pool Rules​

RoleTypical Share
Server70-80%
Bartender10-15%
Busser5-10%
Host3-5%

Your restaurant's specific percentages are configured by management.

Viewing Your Tip Out​

  1. Go to Time Clock > My Pay
  2. Select date range
  3. View tip breakdown:
    • Card tips earned
    • Cash tips declared
    • Tip pool contribution
    • Tip out received
    • Net tips

Auto-Gratuity​

For large parties, automatic gratuity may apply:

Party SizeAuto-Gratuity
6+ guests18% (typical)
8+ guests18-20%
Private eventsAs contracted

How Auto-Gratuity Works​

  1. System detects party size
  2. Auto-gratuity is automatically added
  3. Shown on check before payment
  4. Customer can add additional tip
  5. Auto-gratuity treated as service charge

Tax Implications​

Tips are taxable income. Here's what you need to know:

What Gets Reported​

Tip TypeReported To IRS
Card tipsAutomatically (W-2)
Declared cash tipsThrough your declaration
Tip pool distributionsAutomatically (W-2)

8% Rule​

IRS Reporting Requirement

The IRS expects tipped employees to report at least 8% of their sales as tips. If your declared tips are below this threshold, you may be asked to explain. Under-reporting can trigger an IRS audit for both you and the restaurant.

Tip Reporting​

Restaurant Revolution generates:

  • Daily tip reports for your records
  • W-2 with tip income at year end
  • Form 8027 (for restaurant's compliance)

Best Practices​

Maximizing Tips​

  1. Provide excellent service - Engaged customers tip better
  2. Check back regularly - Show you care
  3. Handle issues gracefully - Turn complaints into wins
  4. Be genuine - Customers notice authenticity

Accurate Tracking​

  1. Declare all cash tips - Protects you legally
  2. Adjust signed slips promptly - Don't lose tips
  3. Review your tip reports - Catch any errors
  4. Save receipt copies - For your records

Common Mistakes to Avoid​

MistakeWhy It's a Problem
Not declaring cash tipsTax issues, tip pool unfairness
Missing tip adjustment deadlineLost tip income
Forgetting to clock outTips not calculated correctly
Disputing tip pool after shiftHarder to resolve

Troubleshooting​

Tip Adjustment Not Working​

  1. Check if within 24-hour window
  2. Verify you have adjustment permissions
  3. Ensure transaction hasn't already been adjusted
  4. Contact manager if issue persists

Missing Tips on Paycheck​

  1. Verify you declared tips when clocking out
  2. Check tip pool calculations
  3. Review timing of pay period cutoffs
  4. Ask manager to review tip records

Disputed Tip Amount​

  1. Refer to signed slip (keep copies)
  2. Check transaction receipt
  3. Escalate to manager for review

Voice Commands​

TaskSay
View my tips"Hey Maximus, show my tips today"
Adjust tip"Hey Maximus, adjust tip on table 5 to $12"
Declare tips"Hey Maximus, declare $85 in cash tips"
Tip summary"Hey Maximus, what are my tips this week?"
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