Free Tool

Tip Pool Calculator

Split tips fairly in seconds. Choose your method, enter your team, and get transparent payouts every shift.

1

Shift Setup

Total tips and how you want to split them

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2

Staff

Add your team for this shift

NameRoleHoursPointsPayout
Payout
Payout

Tip splits are just one piece of a great shift

Sideworks gives managers pre-shift briefings, shift notes, scheduling, and team communication — everything you need to run a tight operation, shift after shift.

Understanding Tip Pooling

What is tip pooling?

Tip pooling combines all tips collected during a shift into a single pool, then distributes them among eligible staff using a transparent formula. Instead of each server keeping only their own table tips, the team shares the pool based on hours worked, role contribution, or a combination of both.

This approach rewards teamwork — when the busser, host, food runner, and bartender all contribute to a great guest experience, they share in the outcome.

Which distribution method is fairest?

The Hours × Role Points method is generally considered the fairest because it accounts for both time worked and the role’s contribution to service. A server who works a full shift earns more than one who works half, and a bartender (1.0 points) earns more per hour than a busser (0.5 points).

The key is consistency and transparency — whatever method you choose, document it and apply it the same way every shift.

What does federal law say?

Under the FLSA, tip pooling is legal among employees who customarily receive tips. The 2018 amendment expanded eligibility to include back-of-house staff (cooks, dishwashers) when the employer does not take a tip credit. Managers and supervisors may not participate in tip pools.

Many states have additional tip pooling rules. Always check your state’s labor department for the most current regulations.

Frequently Asked Questions

How do you calculate tip distribution by hours worked?

Add up the total hours worked by all staff in the pool. For each person, divide their hours by the total hours to get their share percentage. Multiply their percentage by the total tip pool to get their payout. For example, if the pool is $600 and a server worked 6 of 30 total hours, they receive 6/30 × $600 = $120.

What are role point weights and how do I set them?

Role points represent the fractional share of tips a role earns relative to a server (1.0). A busser at 0.5 points earns half the per-hour share of a server. These weights should reflect each role’s contribution to the guest experience at your restaurant. The defaults in this calculator are common starting points — adjust them to fit your house policy.

Can back-of-house staff be included in tip pools?

Yes, under the 2018 FLSA amendment, back-of-house employees (line cooks, prep cooks, dishwashers) can participate in tip pools when the employer does not take a tip credit and pays the full minimum wage. This varies by state — some states had already allowed BOH inclusion, while others may have additional restrictions.

Can managers participate in tip pools?

No. Under federal law, managers and supervisors are prohibited from participating in or retaining tips from a tip pool. This applies regardless of whether the manager also performs tipped duties. A shift lead who is classified as non-supervisory may be eligible, but the line is legally nuanced — consult your state’s guidance.

How should I handle rounding when splitting tips?

This calculator rounds each person’s payout down to the nearest cent. Any remaining cents (the rounding remainder) are flagged in the results. Common practice is to give the remainder to the person who worked the most hours, add it to a house fund, or rotate who receives it across shifts. The key is having a consistent, documented policy.

Do I need to keep records of tip distributions?

Yes. Employers are required under the FLSA to maintain records of tip distributions. The results from this calculator — printed or saved as a PDF — can serve as your shift tip record. Include the date, total pool, method used, and each staff member’s payout.