Restaurant tip management software automatically calculates, splits and tracks tips for restaurant staff, reducing the need for managers to work them out by hand in spreadsheets or with cash at the end of a shift. It pulls tip and sales insights from the POS, uses the restaurant's tip pooling or tip-out rules, and records who earned what. That saves managers time, cuts down on math errors and gives employees a clear view of their earnings. Toast Tips Manager automates tip calculations from the same insights your Toast POS already collects.

Automatic tip distribution is the process of using software to split tips among staff based on rules the restaurant sets, such as hours worked, role or a set percentage. Managers can reduce the need to calculate shares at the end of each shift. The software uses each employee's tips, sales and clocked hours to work out every payout the same way each time. That makes tip payouts faster, more accurate and easier to explain to staff.

Tip management software simplifies tip pooling by automatically combining tips and splitting them by the restaurant's rules. Managers set up the pool once, choosing who takes part and how shares are split, such as by hours worked, role weighting or percentage. After that, the software runs the math every shift. Each pool payout is recorded, so managers can review the numbers and employees can see how their share was calculated. This can help reduce errors and disputes, and tip practices stay consistent across shifts and locations. Check out our Tip Pooling Calculator to split tips in seconds.

Toast Tips Manager is an integrated tip management solution for restaurants using the Toast platform. It helps US restaurant operators create customizable tip pool rules, automate tip distribution, and simplify tip reporting for employees.

Toast Tips Manager is built into the Toast platform, so it reads sales, tip, and timesheet data from your Toast POS without imports or manual entry. Tips are calculated as shifts close, managers approve the totals, and approved amounts are sent to Toast Payroll for payout. That keeps tipping, timekeeping, and payroll working from the same source of data.

Tip pooling combines tips from eligible employees into one pool, which is then split among the group using a set formula. Tip sharing, often called a tip-out, is when an employee gives a portion of their own tips to coworkers who supported them, like a server tipping out the bartender, busser or host. A tip pool spreads earnings across the whole team. A tip-out moves part of one person's tips to specific coworkers. Many restaurants use both. You can model a pool with the tip pooling calculator, or use Toast Tips Manager to run either method automatically.