There are two ways in which you can calculate how tips get redistributed across recipient work areas:

• Calculate by work area and hours
• Calculate by hours only

Note: If a staff member's shift covers multiple tip share periods, the distribution will be calculated according to the number of hours they worked in the currently selected tip share period.

Calculate by work area and hours

When calculating by work area and hours, a set percentage of sales from each contributor and tip share group is given to each receiving work area.

For example:
1% of sales for the tip share group Food goes to Kitchen tips. The amount that each Kitchen staff member receives from the Kitchen tips is proportional to the amount of hours they worked in the tip share period:

• POS records $2000 of sales for the Food tip share group within the tip share period.
• 1% of Food sales ($20) goes into the tip pool for the Kitchen work area.
• $20 is distributed to the three kitchen staff proportionately to their hours worked.
• Chef 3 receives $20 x (8/14) = $11.43

Calculate by hours only

Calculating by hours only, the contributor's percentage of sales goes into a single tip pool for the tip share period. The money in the tip pool is distributed amongst all receiving work areas, in proportion to the number of hours worked by each staff member.

For example, if Chef 3 in the diagram above worked 8 hours in the tip share period, and the total hours worked by all staff in the tip share period was 40, Chef 3 would receive 8/40 of the total money in the tip share pool.

See also:

• Tip sharing