Tip Pool Calculator

Hours-based distribution gives each staff member a share proportional to their hours worked. A barista who worked 8 hours gets twice the share of one who worked 4 hours. Points-weighted distribution multiplies hours by a role weight before calculating shares. This lets you give a higher weight to roles with more responsibility (e.g., lead barista = 1.5, support staff = 1.0) while still accounting for time worked.

The calculator distributes tips to the nearest penny. After rounding down each person's share to the nearest cent, any remaining cents (typically $0.01 to $0.03) go to the staff member with the most hours. In a tie, the first person alphabetically receives the residual. This ensures the total distributed always equals the total tips entered.

Role weights are entirely up to you. The calculator does not prescribe them. Common starting points: 1.0 for all staff (equal weighting, same as hours-based); 1.25 to 1.5 for leads or trainers; 0.75 to 0.9 for support roles or back-of-house. Whatever weights you choose, make sure your team understands them and the reasoning before you implement the system.

Tip pooling laws vary by state and depend on whether your business takes a tip credit (pays below minimum wage using tip income). Under federal law (FLSA), employers who do not take a tip credit can pool tips among front- and back-of-house employees. State laws vary significantly. This calculator does not provide legal advice. Consult an employment attorney before implementing a tip pool.

Federal law generally prohibits employers, managers, and supervisors from participating in tip pools. Whether a specific role qualifies as a 'supervisor' is a legal determination. This calculator does not enforce that rule. Add staff accordingly. If you are unsure whether a role is eligible, consult an employment attorney.