Tip Pool Splitter

A role weight scales a worker's hours relative to others in the pool. A server at weight 1.0 earns a full proportional share per hour. A busser at weight 0.5 earns half as many tip dollars per hour worked. You can set any weight between 0.1 and 2.

Set all role weights to 1.0. With equal weights the split becomes purely proportional to hours worked, so a worker who put in 10 hours out of 40 total receives exactly 25 percent of the tip pool, regardless of their role title.

Rounding each person's share to two decimal places can cause the total to differ by a cent or two. In practice, the largest share holder is typically adjusted by the remainder.

Federal law allows tip pooling among employees who customarily receive tips, including servers, bartenders, and bussers. Under the 2018 FLSA amendments, back-of-house staff can be included if no tip credit is taken. State laws vary, so confirm local regulations.

No. The Fair Labor Standards Act (FLSA) prohibits employers from keeping any portion of employee tips. Tips belong to the workers. Employers may set up a tip pool among customer-facing staff, but only if certain requirements are met, and they cannot take a cut for the house.

Some states allow employers to deduct the credit card processing fee (typically 2-3 percent) from a tip before distributing it. Check your state's laws and tell your team clearly if this deduction applies, so the pooled amount everyone sees reflects the fee.

The IRS requires employers to keep tip records for at least 4 years. Employees must report all tips they receive, including their share from the pool. A clear record of each split protects both the employer and the staff if an audit ever comes up.