This is normally handled by one or more lines (ComplexTipRate) on the server checkout report and the manager tracks the amounts paid in by each server and pays them out to the appropriate employees at the end of the shift. Using the ComplexTipRate settings, a combination of an employee's net sales, by sales department, can be paid out as a percentage. For instance, a bartender could be paid out 2% of all liquor, beer, and wine sales, a host 1% of all sales, and a busser 1% of just food sales.
There were a few limitations with this approach:
1. Servers have to declare 100% of their tips for tax purposes, but yet they might have to pay out 10-20% of those tips to other employees. Using tip redistribution allows an employee to transfer some of their tips to other employee to make the paying of taxes fair.
2. For sites that pay credit card tips on a server's paycheck (something that is gaining in popularity), it makes tracking and paying out these partial tips a non-event for management.
3. The managers must manually track all of these tips in and out during the day, which adds to their work loads. (note: we have not yet figured out the best way to help with this, and are hoping we get some good suggestions from the field).
How this works, from the Management Console:
When Querying Payroll for an employee, you can click a new option called Tip Redist. This will bring up a screen that allows you to then enter tips that the selected employee paid out to other employees. Only the employees that worked that day (currently clocked in employees are ignored) in a pay category that has the Redist Tip Target checked. To enter a tip amount paid to one of those other employees, click the employee's name and enter the amount of tips paid on the right side of the screen. In version 3.1 you can redistribute to up to 6 other employees (this will likely be 10-12 in 3.2+). If the site is paying credit card tips on payroll, this operation will effect employee pay, so it must be done accurately.
from the Terminal:
There are 2 ways to redistribute tips from the Front of House, either at server clock out or server check out.
At server clock out, a screen is displayed if the employee is working in a pay category that has the Redis Tip @ FOH checked. On this screen all employee that have worked during the day, including clocked in employees, in a pay category that has the Redist Tip Target checked with a arrow button to the left of each. Clicking this arrow button will allow the server to enter the amount of tips being paid to that server. When complete, the OK button is pressed. The server cannot redistribute more tips away from themselves than they have declared. A report can print to give the to manager that shows the tips that they have distributed to other employees, either to verify that this was properly done when paying credit card tips on payroll or for the manager to then manually pay out to the other employees.
At the server check out, a screen is displayed just like above however the amounts from the ComplexTipRates are then automatically tagged to each pay category for redistribution. Touching the arrow to the left of each employee then assigns the amount of the complextip for that pay category to that employee. If allowed via ini setting, you can touch more than one employee per pay category and it will divide out the amount among the employees.
Overall, when you redistribute tips from one employee to another, it lowers the tips for the from employee and raises the tips to the to employee, for instance: Server 1 redistributes $10.00 to Server 2. On the payroll report Server 1 will see -$10.00 for tips and Server 2 will see +$10.00 for tips. It is important that Server 1 still records all of their tips before distribution, and Server 2 does not record any tips that are redistributed to them.
Available INI options:
| ComplexTipPercentName | see KB for more details |
| ComplexTipPercentRate | see KB for more details |
| RedistTipCheckoutLinePayCatg | for each complex tip rate, assigns that amount to employees that worked in the indicated pay category |
| RedistTipSingleEmpPerPayCatg | allows only a single employee per pay category to receive redistributed tips |
| RedistTipPromptAmount | allows a server to change the redistributed amount for each employee |
| RedistTipAllowLowerAmount | allows a server to change the redistributed amount for each employee lower than the amount calculated by the complex tip rate |
| RedistTipAllowCancel | allows an employee to cancel out of redistributing their tips without a manager override |
| RedistTipPrintReport | prins a redistributed tip report when the employee completes the redistribute tip process |
| GetRedistTipsAtCheckOut | prompts an employee to redistribute tips at check out as opposed to clock out |
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