How to Use Tip Share?

Popular Search:Tips, Setup, Troubleshooting

blogicsystems Software Guides, Point of Sale

Introduction

  • Tip sharing is a system designed to equitably distribute tips among employees based on predefined roles, rates, and hours worked. This guide provides detailed instructions for setting up on Pos Dashboard and managing tip sharing using BLogic View.
  • Whether you’re configuring tip distribution for roles or individual employees, this step-by-step guide ensures clarity and precision, enabling fair tip allocation across your team.
  • By following these instructions, you can streamline the process, verify conditions, and generate accurate reports.

Table of Contents

  1. What is Tip Sharing?
  2. Setting Up Tip Sharing
  3. Calculating Tip Share
  4. Using the POS Software for Tip Sharing
  5. Result
  6. Frequently Asked Questions (FAQ)

Content

1. What is Tip Sharing?

  • Tip sharing is a method of sharing tips collected from customers and distributing them among eligible employees based on their roles, hours worked, and predefined rates.
  • Unlike tip pooling, which may focus solely on hours, tip sharing incorporates role-specific distribution percentages and allows flexibility for retaining tips at either the role or employee level.
  • This system ensures that employees in various positions, including those in lead roles, receive a fair share of tips according to the business’s configuration.

2. Setting Up Tip Sharing

To implement tip sharing, you’ll configure settings within the POS Dashboard software at both the role and employee levels.

Overview: Tip share can be calculated and distributed based on hours worked, role-specific rates, and now also by department. Tips collected from various sources—Phone App, Web Order Online, QR Code Dine-In, QR Code Online, and KIOSK—are summed up and allocated to departments for equitable distribution among employees.

Configuring Roles for Tip Sharing

  • Setup: POS Dashboard → Employee → Manage Role
  • Steps:
    1. Set Up Tip Retain: Define whether tips are retained (kept aside) at the role level. This determines how much of the tip pool is held back before distribution.
    2. Manage Tip Distribution: Click the “Manage Tip Distribution” button to access the configuration screen.
      • Assign a percentage (%) to each role for tip distribution.
      • Ensure the total percentage across all roles does not exceed 100%.
      • Only roles with a distribution percentage greater than 0% will receive a share of the tips.
    3. Define Rates and Hours:
      • Tip Rate: Input the Regular Rate and OT (Overtime) Rate for the role. These rates determine how points are calculated for tip sharing.
      • Max Tip Hours per Employee Shift: Specify the maximum regular and overtime hours per shift eligible for tip calculation (e.g., 4 hours regular, 2 hours OT).

Assigning Employees to Tip Sharing

  • Setup: Employee → Manage Employees
  • Steps:
    1. General Tab:
      • Check the box “Employee in Training Period” if the employee is in training. Employees in training may have different tip-sharing eligibility based on your business rules.
    2. Tip Pool Tab: Configure tip-sharing settings for the employee.
      • Option 1: Apply Role Settings
        • Check the box “Apply Tip Rate & Max Tip (EE will be calculated Tip Rate & Max Tip hrs. by role,…)”.
        • This links the employee’s Regular Rate, OT Rate, and Max Tip Hours to the settings defined in Manage Role.
      • Option 2: Individual Settings
        • Uncheck the box to manually input a custom Regular Rate and OT Rate for the employee, overriding role settings.
    3. Tip Retain Option:
      • Check “Use Tip Retain at the Employee Level instead of the Role Level set in Employee → Manage Roles” to calculate tip retention individually.
      • If unchecked, tip retention follows the role-level settings from Manage Role.
    4. Assign Roles:
      • For employees with roles like “Lead [Position],” assign an additional role from the Manage Tip Distribution list with a percentage greater than 0% to ensure they receive a tip share.

Use Tip Retain at the Employee Level instead of the Role Level set in Employee → Manage Roles

Managing Tip Distribution Percentages

  • Path: POS Dashboard → Employee → Manage Role → Click “Manage Tip Distribution”
  • Details:
    • The screen displays a list of roles and their assigned distribution percentages.
    • Adjust percentages as needed, ensuring the total does not exceed 100%.
    • Example: If Servers are assigned 60%, Hosts 30%, and Bussers 10%, only these roles will share tips, proportional to their percentages and hours worked.

By Department Calculation:

  • Tips from all sources are aggregated into a total tip pool.
  • The tip pool is then distributed to departments based on configurations set in the POS Dashboard.
  • Within each department, tips are further divided among eligible employees based on their roles, hours worked (regular and overtime), and predefined tip rates.

Steps to Configure Tip Share by Department:

  1. Access Manage Department:
  • Path: POS Dashboard → Employee → Manage Role → Click on “Manage Department”
  • Action: Define the departments (e.g., Front of House, Back of House) that will receive a portion of the tip pool.

2. Set Up Tip Distribution by Department:

  • Path: POS Dashboard → Employee → Manage Role → Click on “Manage Tip Distribution”
  • Action: On the “Manage Tip Distribution” screen, select the option “How would you like to distribute tip?” and choose “By Department”.
  • Assign a percentage (%) to each department for tip distribution (e.g., Front of House: 70%, Back of House: 30%).
  • Ensure the total percentage across all departments does not exceed 100%.

3. Assign Departments to Roles:

  • Path: POS Dashboard → Employee → Manage Role → Department
  • Action: For each role, select the appropriate department from the dropdown menu. This links the role to a department for tip allocation.

4. Verify Employee Settings:

  • Ensure employees are assigned to roles within the correct department (via Manage Employees).
  • Confirm that role settings (Regular Rate, OT Rate, Max Tip Hours) or individual employee settings are applied as needed.

    Calculation Process:

    • The system calculates the tip share for each department based on the assigned percentage of the total tip pool.
    • Within each department, tips are distributed to employees proportionally based on their hours worked and tip rates (either role-based or individually set).
    • Example: If the total tip pool is $1,000, and Front of House gets 70% ($700), the $700 is split among Front of House employees according to their configured rates and hours.

    3. Calculating Tip Share

    Overview: Tip share calculation involves distributing tips collected from various sources (Phone App, Web Order Online, QR Code Dine-In, QR Code Online, KIOSK) among eligible employees based on their roles, hours worked (regular and overtime), predefined tip rates, and, optionally, department settings. The system allows for precise allocation by assigning tip distribution percentages to specific roles and ensuring employees clock in under roles eligible for tip sharing.

    Key Considerations:

    • Tips are pooled from all sources and allocated based on configurations set in the POS Dashboard.
    • Roles with a tip distribution percentage greater than 0% (e.g., Bartender with 20%) are eligible for tip sharing.
    • Employees with specialized roles, such as Lead Bartender, may require additional role assignments to ensure they receive a tip share. Employees must clock in under the role tied to a tip distribution percentage to have their hours count toward tip calculations.

    Conditions for Receiving Tip Share

    • Role Selection: Employees with multiple roles must clock in and out under a role listed in Manage Tip Distribution with a percentage greater than 0%.
    • Clock In/Out: Employees must have sufficient recorded hours (clocked in and out) within the tip-sharing period to qualify.

    Set Up Role-Based Tip Distribution:

    • Path: POS Dashboard → Employee → Manage Role → Click on “Manage Tip Distribution”
    • Action: Assign a percentage (%) to each role eligible for tip sharing.
      • For example:
        • Bartender: 20%
        • Server: 50%
        • Host: 20%
        • Busser: 10%
    • Ensure the total percentage across all roles does not exceed 100%.
    • Note: Only roles with a percentage greater than 0% will receive a share of the tip pool.

    Handle Specialized Roles (e.g., Lead Bartender):

    • For employees with roles like Lead Bartender, which may not have a default tip distribution percentage:
      • Path: POS Dashboard → Employee → Manage Employees
      • Action: Assign an additional role with a tip distribution percentage (e.g., Bartender with 20%) to the employee.
      • Example: An employee with the role “Lead Bartender” should also be assigned the “Bartender” role in their profile to ensure eligibility for the 20% tip distribution.
    • Clock-In Requirement: Employees must clock in and out under the role listed in “Manage Tip Distribution” (e.g., Bartender, not Lead Bartender) for their hours to contribute to tip share calculations.
      • Example: If an employee clocks in as “Lead Bartender” but has both “Lead Bartender” and “Bartender” roles assigned, only hours logged under “Bartender” will count toward the 20% tip distribution.

    Configure Tip Rates and Hours:

    • Path: POS Dashboard → Employee → Manage Role
    • Action: For each role, define:
      • Regular Rate and OT (Overtime) Rate: These determine how points are calculated for tip sharing.
      • Max Tip Hours per Employee Shift: Specify the maximum regular and overtime hours per shift eligible for tip calculation (e.g., 4 hours regular, 2 hours OT).
    • Individual Overrides: In Manage Employees, uncheck “Apply Tip Rate & Max Tip” to manually set custom rates for specific employees, if needed.

    Optional: Configure by Department:

    • Path: POS Dashboard → Employee → Manage Role → Click on “Manage Department”
    • Action: If distributing tips by department, select “By Department” in “Manage Tip Distribution” and assign percentages to departments (e.g., Front of House: 70%, Back of House: 30%).
    • Link roles to departments in the “Department” dropdown to ensure tips are allocated correctly.

    Verify Employee Clock-In/Clock-Out:

    • Employees must clock in under a role listed in “Manage Tip Distribution” with a percentage greater than 0%. For example:
      • An employee with both “Lead Bartender” and “Bartender” roles must clock in as “Bartender” to receive the 20% tip share for their hours worked.
      • If an employee clocks in under a role without a tip distribution percentage (e.g., Lead Bartender with 0%), their hours will not contribute to tip share calculations.
    • Path: POS Dashboard → Employee → Manage Employees → Tip Pool Tab
    • Action: Confirm that each employee’s role assignments and tip-sharing settings align with the desired distribution.

    4. Using the BLogic View for Setup Tip Sharing

    Accessing Tip Sharing Features

    • Path: Open POS Dashboard Software → Navigate to Employee Settings
    • Details:
      • Use Manage Role to configure role-based settings and distribution percentages.
      • Use Manage Employees to assign employees to roles and customize individual settings.

    Creating Tip Share Reports in Blogic View

    • Path: Blogic View → Setup → Tip Sharing
    • Steps:
      1. Setup: Configure the tip-sharing period and verify role/employee settings.
      2. Report: Generate a report showing:
        • Employee names and IDs.
        • Roles and distribution percentages.
        • Hours worked (regular and OT).
        • Calculated tip share per employee.
      3. Review the report to ensure accuracy and distribute tips accordingly.

    Tip Share Report

    Result

    Upon completing the setup and calculation process, the POS software calculates and distributes tips based on the configured roles, hours, and rates.

    Frequently Asked Questions (FAQ)

    Question 1: What happens if the total distribution percentage exceeds 100%?
    Answer: The system does not allow the total percentage across all roles in Manage Tip Distribution to exceed 100%. You must adjust the percentages to ensure they sum to 100% or less before saving.

    Question 2: How does tip sharing work for employees with multiple roles?
    Answer: Employees with multiple roles must clock in and out under a role listed in Manage Tip Distribution with a percentage greater than 0%. Only hours logged under an eligible role contribute to their tip share.

    Question 3: Why isn’t an employee receiving a tip share?
    Answer: Verify that the employee clocked in/out under an eligible role, has sufficient hours, and has either role-based or individual tip rates defined. Check their settings in Manage Employees.

    Question 4: Can I override role settings for a specific employee?
    Answer: Yes, uncheck “Apply Tip Rate & Max Tip” in the employee’s Tip Pool tab and manually input a custom Regular Rate and OT Rate to calculate their tip share individually.

    Question 5: What is the difference between tip retain at the role level and employee level?
    Answer: Tip retain at the role level (unchecked option) uses the retention settings from Manage Role, applying uniformly to all employees in that role. At the employee level (checked option), retention is calculated individually based on settings in Manage Employees.

    Popular Search:Tips, Setup, Troubleshooting