The following use case scenarios explain tip-share distribution calculations:

Tip-share contribution before tax

The default tip-share percent configured for the Aloha Café is 2%. A server enters items into the Front-of-House (FOH) terminal.

The subtotal of the guest check is $15.48. The system calculates the tip-share contribution as the default tip-share percent multiplied by the subtotal amount of the guest check: 2% x $15.48 = $0.31. The tip-share pool receives $0.31.

Tip-share contribution after tax

The default tip-share percent configured for the Aloha Café is 2%. A server enters items into the FOH terminal.

The subtotal of the guest check is $15.48; however, the system is configured to calculate tip share including the tax. The system calculates the tip-share contribution as the default tip-share percent multiplied by the balance due amount of the guest check: 2% x $16.76 = $0.34. The tip-share pool receives $0.34.

Tip-share contribution including discounted price of item

The default tip-share percent configured for the Aloha Café is 2%. A server enters items into the (FOH) terminal.

The subtotal of the guest check is $15.48. One item, the chocolate pie, costs $1.99 but is discounted with a 50% off promotion. The subtotal reduces to $14.48. The system calculates the tip-share contribution as the default tip-share percent multiplied by the discounted subtotal of the guest check: 2% x $14.48 = $0.29.

Excluding items from tip-share contribution calculation

The default tip-share percent configured for the Aloha Café is 2%. A server enters items into the (FOH) terminal.

The subtotal of the guest check is $23.49. One item, a $10.00 gift card, costs $10.00; however, it is in a category that is excluded from both tippable sales and tip share. The subtotal to calculate tip share reduces to $13.49. The system calculates the tip-share contribution as the default tip-share percent multiplied by the discounted subtotal of the guest check: 2% x $13.49 = $0.27.

Tip-share distribution based on hours worked

The Aloha Point-of-Sale (POS) system is flexible; you can distribute tip share based on the employee hours worked. For this example, the tip-share pool contains $10.00.

The Dinner tip-share pool contributions begin at 5:00 p.m. and end at close of business. During this time, there are two bussers, two host staff, and one bartender on duty. They each worked the following hours:

Tip-share pool and number of hours worked formula

Multiply the total tip-share pool amount by the percentage received by each job code, and then take the amount calculated for each job code and divide it by the total hours worked by all employees clocked in under that job code. The result is the amount all employees clocked in under that job code receives per each hour worked.

Bussser tip-share pool

Host staff tip-share pool

Bartender tip-share pool

Continue to "Defining tip share distribution requirements."