11:40 PM · close-out

Tip pooling software that counts every tip and splits it the same way

Tip pooling software takes the arguing out of the end of the night. Restaurant POS Studio records card tips and declared cash tips for each server, then splits the pool by role points or by hours worked and prints a close-of-day tip report. Your house rules run the same way every night, and you keep a record if anyone asks how the money was shared. This page explains the tools, not the law: check your own state and local rules.

StaffRoleHoursPointsShare
MarisolServer710 —
DucServer610 —
Ji-wooBartender78 —
CarlosBusser65 —
WeiLine cook84 —

Illustrative numbers. Set your own roles and points.

What US federal law says about tip pools

Employers, managers and supervisors can never keep employees' tips. Back-of-house staff such as cooks and dishwashers can share a pool only when the employer pays everyone the full minimum wage and takes no tip credit. State law can be stricter, so check yours.

  • Rule source: 2018 Consolidated Appropriations Act, and the Department of Labor final rule effective March 1, 2021.
  • Violations: back pay of the tips plus an equal amount in damages, and civil money penalties (the 2018 statute set up to $1,100 per violation; the figure is inflation-adjusted).
  • Not legal advice. For UAE and Pakistan, follow local labour rules and a written policy your staff have seen.

Sources: U.S. Department of Labor — Tip regulations under the FLSA (Federal Register, 2020-12-30) · DOL Wage and Hour Division — Fact Sheet #15: Tipped employees under the FLSA · Our full guide to tip pooling rules

How does tip pooling work in Restaurant POS Studio?

Card tips are recorded on each check against the server who took it. Servers declare cash tips at the end of the shift. The pool then splits the total by role points, such as 10 for servers and 5 for bussers, or by hours worked. The close-of-day tip report shows what each person earned and how.

Every check is assigned to a service staff member, so a card tip lands on the right person automatically. Cash is harder to see, so servers declare cash tips at the end of their shift. That gives you one total for the pool that matches the night: card tips from the checks plus cash tips the staff declared.

You choose the split method that matches your written policy. With role points, each role carries a weight and each person's share follows their role. With hours, the pool is shared by time worked. The report shows the inputs, the method and the result per person, so a server can see exactly how their number was reached.

  • Card tips recorded per check and per server
  • Declared cash tips entered at the end of the shift
  • Split by role points or by hours worked
  • Close-of-day tip report per person
  • Auto-gratuity on large parties kept separate on the check

Common tip pool methods compared (house rules must also follow the law where you operate)

Common tip pool methods compared (house rules must also follow the law where you operate)
MethodHow shares are worked outGood fitWatch out for
Role pointsEach role has a weight, such as server 10, busser 5Steady teams with clear rolesPoints must match your written policy
Hours workedPool shared by hours on shiftTeams with uneven shift lengthsHours must be recorded accurately
Points times hoursRole weight multiplied by hoursMixed roles and mixed shiftsHarder to explain without a report
Percentage tip-outServer pays a set share of tips or sales to support staffServers keep most tips, support paid a shareTip-out on sales can exceed tips on a slow night
Equal splitSame share for everyone in the poolSmall teams that work every shift togetherFeels unfair when hours differ
Service charge (common in UAE and Pakistan)Fixed charge on the bill, shared by house policyMarkets where service charges are normalFollow local labour rules and your own written policy

Close-out, step by step

  1. Write your tip policyAgree in writing who is in the pool, the split method and how cash is handled. In the US, check federal and state law first.
  2. Set roles and weightsAdd staff roles such as server, bartender, busser and runner, and set points per role or choose hours as the method.
  3. Record tips on checksServers add card tips at payment as usual. Each tip is stored against the server assigned to that check.
  4. Declare cash at closeAt the end of the shift each server declares cash tips, so the pool total matches what was actually received.
  5. Print the tip reportRun the close-of-day tip report, share each person's line with them, and keep the report with your records.

What can go wrong — and the fix

  1. A manager who also serves tables takes a share of the pool.

    In the US, managers and supervisors may never keep employees' tips under federal law. Set roles so managers are not in the pool, and check state rules for any exceptions on tips they receive directly.

  2. Cooks are added to the pool while the restaurant also takes a tip credit.

    Under federal rules, back-of-house can share only when no tip credit is taken. Decide on tip credit first, then design the pool. Ask a local employment adviser if unsure.

  3. Cash tips are never declared, so the pool looks smaller than the night.

    Make cash declaration part of the close checklist, before the server clocks out, and review totals against cash in the drawer.

  4. The pool rule changes from night to night depending on who closes.

    Write the policy down, set it once in the POS, and let the report do the math. Changes go through the owner, not the closing manager.

Tip pooling questions

Onboarding desk · usually replies within a business day

Can my managers share in the tip pool?
POS Studio

Under US federal law, employers, managers and supervisors may never keep any part of employees' tips. That rule comes from the 2018 Consolidated Appropriations Act and the DOL final rule effective March 1, 2021. State laws can add more limits. This is general information, not legal advice.

Can cooks and dishwashers be in the tip pool?
POS Studio

Under federal rules, back-of-house staff can share in a pool only when the employer pays full minimum wage and takes no tip credit. Some states have different or stricter rules. Check your state law and talk to an employment adviser before changing your pool.

Does the POS decide who is allowed in the pool?
POS Studio

No. The POS runs the method you choose and records the result. Deciding who is eligible is your responsibility under the law where you operate. Set roles carefully and keep your written policy with your tip reports.

How are cash tips added to the pool?
POS Studio

Servers declare their cash tips at the end of the shift. The declared amount is added to card tips recorded on their checks. The pool then splits the total by your chosen method. Managers can compare declared cash with the drawer count.

Can I split the pool by hours instead of roles?
POS Studio

Yes. You can split the pool by role points or by hours worked. Hours suits teams with uneven shift lengths. Role points suits teams where servers and support staff work similar shifts but carry different responsibilities.

Is auto-gratuity treated as a tip?
POS Studio

Auto-gratuity on large parties is added to the check as a separate line. In the US, a mandatory charge is often treated as a service charge rather than a tip, with different tax and pay rules. Check how your state and your accountant treat it before you set your policy.

How does tip pooling work for my restaurant in Dubai or Karachi?
POS Studio

In the UAE and Pakistan, service charges on the bill are common, and how they are shared is usually set by house policy. Follow local labour rules and your own written policy. The POS records card tips, declared cash tips and service charges so you can share them the way your policy says.

Can servers see their own tip share?
POS Studio

The close-of-day tip report shows each person's share and how it was calculated. Many managers print or share each line with the person it belongs to. Seeing the inputs and the method usually ends disputes before they start.

Is tip pooling on the Counter plan?
POS Studio

No. Tip pooling is part of Full Service and Group. Counter records tips on checks, but the pooling by role points or hours and the pooled tip report are in Full Service. You can upgrade from your account at any time.

Do card tips cost more to process?
POS Studio

Card tips run through your own card processor along with the rest of the payment. Your processor's contract sets the cost. We do not add PCI or statement fees, and card data stays with your processor when you use an integrated terminal.

Tips shared fairly, on the record.

Try tip pooling on the free trial with last Friday's numbers.