Tips calculation Method 1

Tips calculation Method 1 is distributed as follows.

Tips (including employee taxes) are shared equally on all employees, based on the number of approved hours they have worked independently of the department they are working on.

This method has settings for distribution per day or per month.

The calculation for distribution per day is following:

(daily sum of tips) / (sum of approved hours in one day) = tips per hour

The employee gets:

(total number of approved hours in one day) * (tips per hour) = sum tips on employee

The calculation for distribution per month is following:

(monthly sum of tips) / (sum of approved hours in one month) = tips per hour

The employee gets:

(total number of approved hours in one month) * (tips per hour) = sum tips on employee

IMPORTANT!

• Only employees who are a member of the tips plan are included in the tips distribution (employee setting / Business information / )

• Distribution is only based on approved hours (not sick). This means that employees on fixed salary must have approved hours to get tips 

• Employees who are sick are not included in the calculation on the days they are sick