Tip Sharing vs Tip Pooling: Whats the difference, and which one should restaurants use?
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- เผยแพร่เมื่อ 14 พ.ย. 2022
- Hey everyone, Kirk Grogan from TipHaus here. Today we will be looking at the basic differences between Tip Sharing (or tipping out) and tip pooling, and how to know which is best.
We will start with an example of each, and then look at a more realistic example of the restaurant world.
About us: TipHaus is the industry leading automated tool for tip distribution for restaurants and the service industry. We automate, distribute, and help pay services employee's tips instantly.
Thanks for this straight-to-the-point explanation! =)
Helpful summary! A couple of questions:
1. How does TipHaus treat minimum wage requirements like calculating tip credits? For example, a tip-eligible employee does not earn enough tips during a shift to meet the minimum wage benchmark. Will TipHaus help determine/calculate what the tip credit should be?
2. How are service charges (i.e. party of 8+) treated? Are there specific rules within TipHaus for treating service charges?
1) TipHaus works with thousands of restaurants, many of which take advantage of tip credits. Depending on the state, you may be eligible for tip credits to roll over across a week, or a full pay period. Either way, TipHaus' dashboard and summaries make it easy for payroll teams to determine if this threshold was hit. 2) Service charges are returned differently within TipHaus as the POS recognizes the difference. Hundreds of our customers rely on large parties and service charges, and you can absolutely setup rules that apply only to service charges. Additionally, you can treat large parties entirely differently if you have a banquet room or regular events with assigned servers and bartenders.
Can the cooks/ dishwashers get a tip share by law?
Is there any tax on tips ?
but only if workers receive fair wages. now most customers make their donations directly to their bar etc
How much should you tip share to bussers
Okay wait question!! Does tip pool only base it per shift??? So all the employees working that one shift will distribute ? Or is tip pool based on every employee working (even tho ones who are not working that shift) and distribute all shifts, if that makes sense
Great question Marina! It depends entirely on each specific restaurant. Some people pool tips per shift, some per day, and some even do it per week. At TipHaus, we allow more granular where you can pool tips by each check (only the people working during the time the check was open).
A good example: If you have prep staff come in several hours before you open who help setup the whole day, even though they only work the morning shift, a daily tip pool makes sense.
If however, each shift the staff is responsible for opening duties and setting themselves up for success, grouping by shift might be better!
sharing Received donations is one thing, tip outs Based on percentages of Sales rather than Actual received is Wrong. you cannot share money you did not receive
cooks janitors dishwashers need to be paid most wait staff hosts are replaceable