Tip Pool Distribution Calculator
Distribute tips fairly among employees based on hours worked.
Enter total tips and each employee"s hours for an equitable split.
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Tip Distribution
Tip pooling by hours worked is the most common fair method for distributing shared tips among staff.
Formula:
Hourly Tip Rate = Total Tips / Total Hours Worked by All Employees
Employee Share = Employee Hours x Hourly Tip Rate
Example:
- Total tips: $500
- Employee A: 8 hours, Employee B: 6 hours, Employee C: 4 hours
- Total hours: 18
- Hourly rate: $500 / 18 = $27.78/hr
- A gets: 8 x $27.78 = $222.22
- B gets: 6 x $27.78 = $166.67
- C gets: 4 x $27.78 = $111.11
Legal considerations:
- Federal law allows tip pooling among customarily tipped employees
- Managers and supervisors generally cannot participate in tip pools
- Some states have additional restrictions
- Keep records of all tip distributions
How to enter employees: Enter hours as a comma-separated list (e.g., “8, 6, 4, 8, 5” for 5 employees).