Overview

Revel now supports a fully automatic tip pooling calculation tool. Revel clients can now rely on the system to calculate their employees' tip shares based on their desired settings, removing the need for manual data entry. Revel also reports the results in payroll so that clients can accurately pay their employees and report those payments to the IRS.

Tip in contributions are calculated by either By Sales Made or Tips Earned. Tip shares are either calculated evenly across all employee roles, or by percentage based on employee role. The article will include the following sections:

Settings

The settings to configure tip pooling can be found in the Settings > Advanced Pos Settings page, under the Tip Pooling section.

Tip Pooling Settings

Tip_Pooling.png

The following table describes the settings displayed in the image above:

Tip Pooling Settings
SETTINGS SETTING VALUES DESCRIPTION
Allow Tip Polling Check or unchecked Activates the Tip Pooling tool.
Tip Based On Sales or Tips Specifies whether Tip In obligations by employees are based on sales or tips.
Tip Share Even or Percentage Specifies whether the tip share will be even across all employees, or if it will be based on specific role percentages.
Treat Declared Tips As Total Tips, Cash Only, or Ignore Declared Tips Specifies how the tool should treat declared tips.
Include Tip in Amount in Cash Due Employee/House Lines Checked or unchecked Specifies if the system will include tip in obligations when calculating the Cash Due Employee and Cash Due House lines on the Sale Summary Report. This will significantly alter the amount due for each of these lines.
Periodically By Shift, Daily, or Weekly Specifies how often the tip pool should be calculated. If "By Shift" is selected, the user will need to enter the shift time in the "Time Shift Change" field, which only appears if "By Shift" is selected.
Tip In / Tip Share By Role Role, Tip In %, and Tip Share % The fields for this setting allow the user to enter each role that either tips into the pool or shares from it. The user will need to set the Tip In % and Tip Share % for each role. If the Tip Share setting has been set to even, the TIP SHARE % becomes the TIP SHARE check box. For this type of configuration, the user simply needs to check the box for each employee role that shares in the tip pool.

Tip Pooling Tool

Once the Tip Pooling tool has been enabled and configured, the Tip Pooling page appears in the Schedules section of the Management Console. A date and shift time period must be selected on the pop-up calendar before the page populates with data. If the Tip Pooling tool has been configured for percentage based sharing, the tool will display both a "Share Plan" and "Employee Breakdown" section. If the Tip Pooling tool has been configured for even tip sharing, the tool will only display the "Employee Breakdown" section. The "Share Plan" section is a role share calculation tool. An example Tip Pooling Share Plan is shown in the image below.

Tip Pooling Tool, Share Plan Section

tip_pool_share_plan.png

The following table describes the columns displayed in this section:

Tip Pooling Tool, Share Plan Section
COLUMN DESCRIPTION
Role The name of the role.
Hours Total Hours worked by people in this role.
Sales The total sales generated by employees working this role.
Tips Depending on the "Treat Declared Tips As" setting, displays only the declared tips, the declared and payment tips, or only the payment tips for the role.
Tip In % The configured TIP IN % for the employee role.
Tip in Amt. The role's Tip In % multiplied by its total tips or Sales, depending on the configured "Base Tip In Based On" setting.
Tip Share % The tip share percentage for that role. This column can be adjusted by the user.
Adj. Tip Share % The Tip Share % value adjusted so that the sum of all tip share percentages equal 100%.
Tip Share The Tip Share amount for this role. For instance, if no one works at a role, the other roles adj. tip shares will increase.
Adj. Tip Share This is a user defined adjustment for the tip share amount for the role.

The "Employee Breakdown" section provides tip pool calculating for each employee. Employees are displayed on this page in alphabetical order by last name. If even tip sharing is configured, this section only displays the individual employees. If tip sharing is percentage based, in addition to an alphabetical employee view, there is an option to view employees grouped by role. There will be a line for each role an employee works, so some employees may appear multiple times in the table if they work multiple roles. An example of both alphabetical and role based employee breakdowns are shown in the images below.

Tip Pooling Tool, Employee Breakdown

tip_pool_employee_breakdown.png

Tip Pooling Tool, Employee Breakdown - By Role

tip_pool_employee_breakdown_by_role.png

The following table describes the columns displayed in this section:

Tip Pooling Tool, Employee Breakdown Section
COLUMN DESCRIPTION
Name The name of the employee.
Role The role of the employee.
Hours Total hours worked by the employee for the shift period in that role.
Sales Total sales generated by the employee.
Declared Tips The employee’s declared tips. This is an adjustable column.
Payment Tips The payment tips for that employee.
Tip In Amt. The employees tip in amount, which is the configured tip in percentage multiplied by the employee's sales or tips, depending on the "Tip In Based On" setting.
Tip Share Amt. The employee's calculated share of the tip pool.
Adj. Tip Share An adjustable column for the user to adjust the employee's Tip Share Amt. By default, this column will show the Tip Share Amt. value.
Final Tips The employee's declared tips plus any payment tips (this depends on how declared tips are treated) minus the employee's tip out amount plus the adjusted tip share.
Tips Due Employee If the "Include Tip in Amount in Cash Due Employee/House Lines " setting is disabled, this column shows the total tips for that employee. If that setting is enabled, this shows the adjust tip share amount for that employee.
Tip Pool Results The Adjusted Tip Share minus the Tip In Amount for that employee. This is the amount that is reflected on payroll.

Both the "Share Plan" and "Employee Breakdown" sections display the "Calculated Tip Pool", "Tip Pool Adj.", and "Final Tip Pool" columns at the bottom left of the page. These serve as a representation of the Tip Pool. The "Calculated Tip Pool" column displays the sum of all Tip in Amounts. The "Tip Pool Adj." is an empty, user adjustable column where the user can enter any adjustments needed. The "Final Tip Pool" column shows the Calculated Tip Pool + the Adjusted Tip Pool.

Adjustments

In the Tip Pooling tool, we have included the ability for users to make certain types of manual adjustments, to account for unexpected scenarios. These can be made on the Tip Pooling tool. The following types of data are adjustable by users:

  • Role Percentages
  • Total Tip Pool
  • Tip Pool Per Role
  • Declared Tips
  • Tip Share per Employees

Payroll

If Tip Pooling is enabled, the Schedules > Payroll page will gain an extra column labelled, "Tip Pool Results". This value will be the Adjusted Tip Share for that employee, minus the Tip in Amount.

Tip Pooling, Payroll

tip_pooling_payroll.png

Tip In / Tip Share Configurations

There are two ways to calculate contributions to the tip pool - by sales made or by tips earned. Fine dining establishments often declare that certain roles (like servers or bartenders) must contribute x% of their sales to a tip pool. They are allowed to keep any tips that exceed that obligation. This is easier for the system to calculate because it knows how many sales each employee has made and can easily calculate the employee's tip in obligation, even reflecting it in the cash due employee/house line of the Sales Summary Report.

For even tip pool shares, the system adds up all the hours worked by all employees who will share in the tip pool. It then divides the tip pool by the total hours worked to get the tips per hour. Then, each employee's hours worked is multiplied by the tips per hour.

Tip In Based on Sales / Even Tip Share.

To configure your tip in based on sales and an even tip share amongst employee roles:

  1. Navigate to the Settings > Advanced Pos Settings / Tip Pooling section.
  2. From the "Tip In Based On" drop down menu, select the Sales option.
  3. From the "Tip Share" drop down menu, select the Even option.
  4. In the "Tip In / Tip Share By Role" select the Role from the corresponding drop down menu.
  5. Input their Tip In percentage, that is the percentage of those employees sales will be contributed to the tip pool.
  6. Click the Tip Share checkbox if employees of this role are included in the Tip Share.

    tip_in_role_even_share.png

  7. Repeat steps 4-6 for the desired roles.

Tip In Based on Sales / Percentage Tip Share

For percentage based shares, you will need to calculate the tip share percentage and amount for each role. Only roles that have hours worked will figure into the tip pool. The tool takes the role percentages for each role that has time worked during the shift and adds them up. Then proportionally adjusts those percentages so that they add up to 100%. For example, if you have three roles working and their stated percentages are 25%, 15% and 10% (that adds to 50%), the system will adjust them to 50%, 30% and 20%. The tip pool is split up according to those adjusted percentages, so a tip pool of $1000 will end up as $500.00, $300.00 and $200.00. Now you have the tip pool for each role. The system takes the total hours worked by employees with that role and calculate the tips per hour for that role. Then, multiples each employee's hours worked by the role's tips per hour and arrives at the employee's tip share.

To configure your tip in based on sales and a percentage based tip share amongst employee roles:

  1. Navigate to the Settings > Advanced Pos Settings / Tip Pooling section.
  2. From the "Tip In Based On" drop down menu, select the Sales option.
  3. From the "Tip Share" drop down menu, select the Percentage option.
  4. In the "Tip In / Tip Share By Role" select the Role from the corresponding drop down menu.
  5. Input their Tip In percentage, that is the percentage of those employees sales will be contributed to the tip pool.
  6. Input the Tip Share percentage, that is the percentage of the total tip pool that those employees will receive.

    tip_in_role_percentage_share.png

  7. Repeat steps 4-6 for the desired roles.

Tip In Based on Tips / Even Tip Share

Other establishments will require that certain (or all) roles contribute a certain percentage (or all) of the tips earned to the pool. For this, the system relies on declared tips. You will need to define whether declared tips represent cash only or whether they represent all tips earned by the employee, or whether they should be completely ignored in the calculations (this would be for businesses that pool *all* tips). Once the system has this data, it can figure out the employee's tip in obligation and even reflect it in the cash due employee/house line of the Sales Summary Report.

To configure your tip in based on Tips and an even tip share amongst employee roles:

  1. Navigate to the Settings > Advanced Pos Settings / Tip Pooling section.
  2. From the "Tip In Based On" drop down menu, select the Tips option.
  3. From the "Treat Declared Tips As" drop down menu, select either Total Tips, Cash Only, or Ignore Declared tips. Declared Tips is the number that is entered upon logging out of the POS.

    treat_declared_tips_as.png

    • Total Tips - When calculating the tip pool, the system will ignore tips on payments and treat the declared tips as the total amount of tips.
    • Cash Only - When calculating the tip pool, the system will use payment tips plus the declared tips.
    • Ignore Declared Tips - The system will ignore all declared tips and calculate the tip pool based off of all payment tips.
  4. From the "Tip Share" drop down menu, select the Even option.
  5. In the "Tip In / Tip Share By Role" select the Role from the corresponding drop down menu.
  6. Input their Tip In percentage, that is the percentage of those employees sales will be contributed to the tip pool.
  7. Click the Tip Share checkbox if employees of this role are included in the Tip Share.
  8. Repeat steps 5-7 for the desired roles.

Tip In Based on Tips / Percentage Tip Share

To configure your tip in based on tips and a percentage based tip share amongst employee roles:

  1. Navigate to the Settings > Advanced Pos Settings / Tip Pooling section.
  2. From the "Tip In Based On" drop down menu, select the Tips option.
  3. From the "Treat Declared Tips As" drop down menu, select either Total Tips, Cash Only, or Ignore Declared tips. Declared Tips is the number that is entered upon logging out of the POS.
    • Total Tips - When calculating the tip pool, the system will ignore tips on payments and treat the declared tips as the total amount of tips.
    • Cash Only - When calculating the tip pool, the system will use payment tips plus the declared tips.
    • Ignore Declared Tips - The system will ignore all declared tips and calculate the tip pool based off of all payment tips.
  4. From the "Tip Share" drop down menu, select the Percentage option.
  5. In the "Tip In / Tip Share By Role" select the Role from the corresponding drop down menu.
  6. Input their Tip In percentage, that is the percentage of those employees sales will be contributed to the tip pool.
  7. Input the Tip Share percentage, that is the percentage of the total tip pool that those employees will receive.
  8. Repeat steps 4-6 for the desired roles.


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