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How To Create A Server Tip Out Sheet (+ 5 Examples)

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Tessa ZuluagaAuthor

Why do servers need a tip out sheet?

Depending on the restaurant, front-of-house staff may divide their tips in many different ways. Some business pool tips, some work independently to keep tips, and some tip-out staff. This can be a tricky topic that servers deal with—how to share their tips with support staff and bar.

As a guest enjoys a meal at a restaurant, there's a team working behind the scenes, including servers, bussers, food runners, and bartenders. But figuring out how to divide the tips among everyone can be a challenge. Different restaurants have different ways of doing it, and for servers, it means giving up some of the money they worked hard to earn. It's like a balancing act – servers want to be fair and work well with their team, but they also have to make a living. So, deciding percentages of tip sharing can become a bit of a puzzle.

In this article, we’ll explain how servers can tip out their fellow staff members and provide real examples for you to choose from. Remember, teamwork makes the dream work. Let’s dive in.

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What is a tip-out sheet?

A tip-out sheet is a document used in the restaurant industry to keep track of tips and distribute them among various staff members. In some restaurants, tips are pooled together and divided among employees based on their roles and responsibilities.

A tip-out sheet includes both credit card tips and cash tips to make payouts as fair as possible. The sheet typically specifies the percentage or amount that each position will receive. For example, bussers might get a certain percentage, bartenders another, and back-of-house staff a different percentage.

Who uses a tip-out sheet

A tip-out sheet can be used by anyone in a restaurant who needs to determine how much of their tips should be allocated to another staff member. Having a tip-out sheet promotes transparency and ensures that everyone is aware of how the tips are being distributed.

How to make a tip-out sheet

There are many different ways you can create a restaurant tip sheet. It’s important to choose a format that works best for your specific staff. Many full-service restaurants like to have printable sheets so staff can see the sheet templates in front of them each night to determine their tip amounts fairly.

In a tip-out sheet, you want to include:

  • The staff members earning tips 

  • The total tips acquired 

  • The hours each employee worked 

  • Each employee’s tip percentage 

  • Total tip out 

You can make your own tip-out sheet template in any of the following programs:

  • Microsoft Excel (highly recommend)

  • Google Sheets

  • Microsoft Word

  • Google Docs

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Tip Pooling Calculator

Use the Tip Pooling Calculator to learn how to distribute tips back to your restaurant’s employees using the tip pooling method.

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5 tip out sheet examples

Below are five different tip-out sheet examples, each with a slightly different focus or format:

Tip transparency

It’s important tipped employees understand why they’re leaving with split tips each night. Tip income is a huge part of the industry and there should be no confusion about your staff’s total tips each night. Implementing tip-out worksheets can help avoid confusion and keep your staff focused on what matters, providing phenomenal service to your guests.

To make your daily operations easier, consider using a POS system with a fully integrated tip management solution built for restaurants. With Toast, you can automate your tip pooling without the use of Excel spreadsheets to streamline the closeout process.

For more information on tip income check out the following articles:

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DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.