As a manager, do I need to do anything on a daily basis to maintain the validity of the tip distributions?
The only thing that must be done is all done within the Point of Sale. Clock in/out times are valid and job codes must be correct for Tiphaus to function correctly. After that, everything else is done automatically.
What is distribution frequency?
A percentage of sales or tips is generated during the timeframe and summed up THEN distributed only to the employees that were clocked in during that time period. This methodology mitigates employees earning tips from time periods that they were not actually working. We allow our customers to choose between Daily, Hourly, and every Half Hour time segments. We also offer Time of Sale which takes an individual sale and divides tips, at the time the credit card is swiped, equally among all people working at the same time i.e. 3% of Food sales on that check are split equally among the 3 cooks that are working.
What if an employee does not clock out?
They will not be recognized by Tiphaus until a clock out in established. This means that they will not receive or give any tips away until their clock out is fixed. It is important to verify that all employees clock out every day. If an employee does not clock out then a notification will pop up on the dashboard indicating that something should be done. You will also get a notification from Toast.
What is the difference between Tip Sharing and Tip Pooling?
Tip Sharing : When a portion of tips is taken from a revenue earning job code and given to another job code for the support they provide. This can include a server tipping out a cook or a cocktail-er tipping out a bartender.
Tip Pooling : When a group shares tips equally while working together. This can include two bartenders pooling tips so that one can focus on making drinks and one can focus on taking payments, Or sometimes all the serving staff of a restaurant can pool tips which can reduce conflicts and improve morale.
How do tip pools work?
The job codes selected to be in the tip pool share tips equally. When a credit card is processed and someone earned tips on the transaction then the full amount of the tips are shared equally with everyone clocked in as one of the job codes in the tip pool. Example: Two bartenders are working at the same time and one makes $10 in tips then both bartenders will get $5.
How do regular tip rules work when you also have tip pool rules established?
The tip pools work as they always do. The tip sharing rules just as you would expect: tip sharing based on sales work just as if there were no pools active and the deposits and withdrawals from tips take effect on the net tip pool amount as opposed to the net tip amount. Now, if you have tip sharing rules based on a percentage of tips, the percentage is calculated from the net tip pool amount instead of the net tips amount. ProTip: It you want to run with tip pools and tip sharing then create rules that are based on net tips. If they are based on a percentage of sales then the higher revenue earners will be adversely affected. Example: Two bartenders are in a pool together, $10 in tips are earned by one bartender, both bartenders get $5. BUT the bartender that made the sale is the only one that pays out for the tip sharing rule if the rule is set to collect based off of a percentage of sales.
What do the different categories mean in the email that I receive every day or see in the App?
Hours worked : Total time worked
Sales : Total Sales
Credit Card Tips : Total credit card tips earned by employee before sharing or pooling
Cash Tips : Cash tips that were declared when shift was closed out
Total Tip Pool : If you are part of a tip pool you are splitting tips equally with anyone else in the pool that was also working at the time as you. This means that if $100 in tips was made by you and $0 was made by your coworker during a 2 hour shift then you will both have $50 in total tip pool.
Total Shared: Total tips taken from Credit card tips and given to supporting staff. If employees are in a tip pool then the tips will be taken from that total.
Total Received: Total tips received from other employees for supporting their sales
Credit Card Tip Fee: The fee that is passed on by the restaurant to cover the transactions (usually between 1-3% of Take Home). All credit card transactions are charged a fee by Visa or Mastercard.
Take Home: Total tips an employee takes home after all calculations and fees are applied.
Emails are sent out for each shift worked