Tip Pool Types

Tip pools are a collection of tip-based earnings that you can distribute among employees based on various factors, such as the job or number of hours worked. For example, wait staff are traditionally the recipients of tips at a restaurant. However, it takes a team of people to provide optimal service to the guests, including hosts/hostesses, bartenders, and table bussers. Because many employees contributed, you might want to distribute those tips among all employees who worked the shift. Tip pool types are the templates used to distribute the total amount of tips among employees. The tip pool type determines the number of sub-pools among which the tips are distributed, which Employee Sets are eligible to receive the earning, and whether tips are distributed as a fixed amount (units) or a variable amount (percentages). Tip pool types can be deleted or changed as needed, without affecting any tip pools that were created with the tip pool type. 

Tip pool types include a sub-pool for each employee set that is eligible to receive tips from the tip pool. You can further customize tip distribution by adjusting how the amounts are allocated in each sub-pool. You can also configure a certain percentage of tips to be kept by the property. This is called the In House Percent or Percent Holdback.

For example, a tip pool type has 10% holdback. 90% of that tip pool is distributed to employees via sub-pools. You can divide the tip pool as follows:

% of Tip Pool	Recipient Group
10	House
30	Wait Staff
20	Bartender
20	Busser
20	Host

In this example, you create a tip pool type with 10% holdback and four sub-pools, one for each employee set.

Note: After you configure tip pool types in Setup, you can begin distributing tips from the Tip Pools screen in the Time & Attendance module of RMS.