Tip Pools

Use the Tip Pools screen to distribute a total amount of collected tips among one or more Employee Sets. When you create a tip pool, you enter the total amount of tips that have been collected. Once the tip pool is created, RMS calculates the appropriate distribution of tips based on the selected tip pool type and its sub-pools.

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 of the employees who worked the shift.

When you create a tip pool, you assign a tip pool type to the pool. The tip pool type determines how the tip pool is divided between the house and the selected employee sets. The percentage of the tip pool that is kept by the house and not distributed among employees is known as the Percent Holdback. The remaining percentage is divided into sub-pools, according to how you have configured the tip pool type.

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: Before you begin, you must configure Tip Pool Types in Setup > T&A. The configurations on the Tip Pool Types screen determine how the total tips are distributed among sub-pools and which employee sets receive the earning.

annotated screenshot of the Tip Pools screen

Fields on the Tip Pools screen

#	Field	Description	Notes
Available Tip Pools pane
1	Date range selector	Select a start date and end date for the date range that you want to view.
2	Available Tip Pools list	Displays the list of available tip pools.
3	/ Expand / Collapse pane	Show or hide the Available Tip Pools pane.
4	Add	Opens the Create Tip Pool dialog box where you create a new tip pool.
5	Delete	Deletes the selected tip pool.	This button is only available if a tip pool is selected.
Details pane
6	Re-Calculate Tip Pool	Calculates tip pool earnings for each employee.	This button is only available if a tip pool is selected.
7	Create Earnings	Applies the tip pool earnings to the employees' Review Time Card screen.	This button is only available if: A tip pool is selected. Earnings are not yet created. You have the Time & Attendance user license. You cannot create earnings for a locked or closed pay period.
8	Delete Earnings	Deletes the tip pool earnings from the employees' Review Time Card screen.	This button is only available if: A tip pool is selected. Earnings are created. You have the Time & Attendance user license. You cannot delete earnings for a locked or closed pay period.
9	Tip Pool Details	Displays information for the selected tip pool, including: Name—Name of the tip pool. Date range—Start date and end date for the period to which the tip pool applies. Total Tips—Total amount of tips to be distributed. Date Range Type—Period of time over which the units are totaled: by the day, an entire week, or an entire pay period. The Date Range Type is determined by the Tip Pool Type associated with the selected tip pool. Percent Holdback—Percentage of total tips that is not distributed to employees. This field is displayed only if Percent Holdback is greater than 0%. Applied On—Date on which the earnings were created. This field is displayed only if earnings have been applied. Applied By—Name of the user who created the earnings. This field is displayed only if earnings have been applied.	Read-only.
10	Sub-pool tab(s)	Select a tab to view detailed information on how tips are distributed among employees within the sub-pool.
11	Sub-Pool Details	Displays details for the selected sub-pool, including: Total Tips for Sub-Pool—Total amount for the sub-pool. This number is generated by multiplying Total Tips by % Pool. Sub-Pool Hours—Total number of hours allocated to the sub-pool. Distribute to Worked Jobs—If Yes, the pool is distributed between all jobs that contributed towards the pool. If No, the pool is paid only to the Home job. Distribution Mode—Method used for distributing Total Tips (Fixed and Variable). The distribution method was determined by the tip pool type (template) used to create the tip pool. % Pool—Percentage of tips to be allocated to a specific sub-pool. If you have multiple sub-pools, the % Pool for all sub-pools must equal 100%. Earnings Type—Type of earnings with which this tip pool is associated. Employee Set—Group of employees to whom the tip pool is applied.	Read-only. Information displayed in this pane is configured on the Tip Pool Types screen.
12	Sub-pool table	Displays earnings and adjustments for employee within the sub-pool. You can add or edit adjustments in the table to make changes to the final earning.
	Name	Name of the employee.	Read-only.
	Worked Hours	Total number of hours the employee worked within the date range.	Read-only.
	Points	Used to apply different weights to different roles within an employee set. For example, if you have an employee set containing all jobs that receive tips indirectly, such as cashiers and bussers, you can apply points to adjust the earnings according to job.	Columns vary depending on configuration of the selected Tip Pool Type.
	Points Adj.	Add or subtract points to adjust total earnings for the employee.	Columns vary depending on configuration of the selected Tip Pool Type.
	Net Points	Number of points to be applied to the earning, after adjustments.	Columns vary depending on configuration of the selected Tip Pool Type.
	Hours	Total number of hours the employee worked within the date range.	Columns vary depending on configuration of the selected Tip Pool Type.
	Hours Adj.	Add or subtract hours to adjust total earnings for the employee.	Columns vary depending on configuration of the selected Tip Pool Type.
	Net Hours	Number of hours to be applied to the earning, after adjustments.	Columns vary depending on configuration of the selected Tip Pool Type.
	Cost	Cost value of the total number of hours the employee worked within the date range.	Columns vary depending on configuration of the selected Tip Pool Type.
	Cost Adj.	Add or subtract costs to adjust total earnings for the employee.	Columns vary depending on configuration of the selected Tip Pool Type.
	Net Cost	Number of costs to be applied to the earning, after adjustments.	Columns vary depending on configuration of the selected Tip Pool Type.
	Factor	Number by which the earnings are multiplied. For example, the default factor is 1. If you had several employees arrive early to set up for a banquet, you might apply a factor of 1.5 to those employees who offered extra help.
	Net Points	Displays the results of the calculation of Hours × Factor.	Read-only.
	% of Sub-Pool	Percentage of Hours allocated for each employee in the sub-pool.	Read-only.
	Gross Allocated Tips	Amount of total tips that the employee will receive if no Tips Adjustment is applied.	Read-only.
	Tips Adjusted	Add or subtract a specific amount to Gross Allocated Tips.
	Net Allocated Tips	Displays the sum of Gross Allocated Tips and adjustments.	Read-only.
	Earning	Amount that the employee receives. This column only displays amounts if the earnings have been created. If earnings have not been created, the column will display all zeros. If the Net Allocated Tips is a negative number or the Earnings and Net Allocated Tips do not match, a conflict icon () appears, indicating a problem that should be corrected.	Read-only.