Tips calculation Method 2

Tips calculation Method 2 is distributed as follows.

Tips (including employee taxes) are shared by department in percent. Employees get their share based on the number of hours they have worked at department.

This method has settings for distribution per day or per month

Departments share of tips = (sum of tips in one day/month) * (percent for department)

The calculation for distribution per day is following:

(department share of tips, day) / (sum of approved hours in one day, per department) = tips per hour, for department

The employee gets:

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

The calculation for distribution per month is following:

(department share of tips, month) / (sum of approved hours in one month, per department) = tips per hour, for department

The employee gets:

(total number of approved hours in one month, per department) * (tips per hour, for department) = 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