How to Submit a Tip Out

This document will walk you thru the two ways to submit a tip out to another employee.

The Submitted Tipout feature allows team members to transfer a portion of their tips to another employee, ensuring accurate tip reporting and fair payroll distribution. Here are a few common scenarios where it’s useful:

1. Shared Tips Behind the Bar - Bartender A and Bartender B worked together, but all sales were rung under Bartender A. As a result, all credit card tips were attributed to Bartender A. To fairly split the tips, Bartender A can submit a tipout to Bartender B, ensuring the tips are correctly shared and not fully reported as income for just one person.

2. Server Tipping Out a Bartender - Server A received all credit card tips for their shift and did not collect any cash tips. Since they are required to tip out the bartender, they can use the Submitted Tipout feature to reflect the tipout. This ensures Server A isn’t taxed on the full tip amount they didn’t keep.

3. Locations Where Tips Are Paid on Paychecks - For businesses that distribute tips through payroll, submitting a tipout ensures the correct amounts are deducted from one employee’s reported tips and added to another’s. This way, each employee receives the appropriate amount of tips in their paycheck.

Note: This will NOT transfer any funds from an employee to another employee, and it will not effect the amount due on their server closes.  This is strictly for payroll reporting purposes only. 

From the Terminal

1. Login and navigate to the Functions button on the launch screen.

2. Select the "Submit Tipout" button

3. Next it will prompt you to select the employee that you wish to submit the tipout to.

• This list will only show you employees who are currently on the clock. If you do not see the person you are looking for you can click the [List all Servers] button to view everyone. 

4. Use the keypad to type in the amount you'd like to tipout.

5. And finally It will prompt you to confirm the amount

See below to see what it looks like on the server close report and the payroll report

From Backoffice

1. Log in to Backoffice --> Staff --> Tip Management --> Tipouts tab --> Add new record
2. Select the time and date at the top. It is important to select the correct time and date to insure that the tipout gets accounted for on the correct payroll report
3. Use the drop downs to select the employe the funds are coming from and the employee the tips are going to
4. Type in the amount
5. Click insert

 

How it looks in reporting

There is a section at the bottom of the server close reported to show the tipout log

• This will only appear on the report if you do it before you clock out
• In this scenario, if Steve had already clocked out, the tipout would appear on his next server close so he can see what tipout he received 

On the payroll reports, it will appear on the tip source box

• Sally gave the tipout to Steve so her report will say "Tipouts given" and Steve's payroll report will say "Tipouts Received"