Record tips collected on each shift and how they were shared, so payroll and staff see the same numbers.
Tips are a large part of pay in restaurants, bars and salons, and they are a common source of disputes. A written summary per shift makes the calculation transparent and gives payroll a reliable record.
Tip pooling and tip credits have specific rules at federal and state level, including who may take part. Set your policy with a professional, then use this template to apply it consistently.
12 items. Complete it digitally or on paper, whichever your team prefers.
| Field | What to write |
|---|---|
| Employee | Maya, server |
| Hours | 6.0 |
| Share basis | Hours worked |
| Tips received | $96.00 |
| Initials | MK |
A cafe pools $240 in tips across four baristas by hours worked: 6, 6, 4 and 4 hours, 20 hours in total. Each hour is worth $12, so two baristas receive $72 and two receive $48. Each initials the summary, and the manager sends it to payroll on Monday.
Under the FLSA, tips are the employees’ property and an employer may not keep any part of them, which a balanced summary helps prove. The same figures give payroll what it needs to withhold taxes on reported tips and include them on each employee’s W-2.
| Shift | Sat Jun 7, dinner, Driftwood Oyster Bar, Galveston |
|---|---|
| Manager on duty | Ivy |
| Tips collected | Card $612.00, cash $188.00, total $800.00 |
| Ruth, server | 6 hours x 1.0 points = 6 units, $300.00 |
| Kyle, server | 7 hours x 1.0 points = 7 units, $350.00 |
| Andre, busser | 6 hours x 0.5 points = 3 units, $150.00 |
| Check | 16 units at $50.00 each; paid out $800.00 = collected |
Andre’s half point comes from the written tip policy, not a decision made on the night, and Ivy is not in the pool because she ran the shift. Each unit is worth $800 divided by 16, so the three shares add back to the exact total.
Rules restrict this. Check federal and state rules before you include managers or supervisors.
Generally yes. Ask your payroll provider how to report them.
Hours, points by role or a mix. Choose one, write it down and apply it the same way.
Yes. A system that records hours makes tip shares easier.
Under federal rules, an employer may deduct the share of the card processing fee that applies to the tip, but not more, and not in a way that cuts the employee’s pay below minimum wage. Some states do not allow any deduction. If you take the fee, show it as its own line on the summary.
The share is still theirs. Calculate it from their clocked hours like everyone else’s and pay it with the next payroll, or on their final check if they are leaving the job. Mark their line as not initialed and note who confirmed the amount.
More for the same job
Because EzTip runs inside EZTime, the tip pool can be split using the same hours that go to payroll. Book a demo if you want a walkthrough.