Tip Pool Calculator

Fair tip distribution for restaurant teams

What is this? Restaurants must distribute tips fairly under IRS rules. This calculator splits total tips by hours worked (最 common legal method) or by custom role weights. Supports servers, bartenders, bussers, host staff, and back-of-house.

IRS rules: Tips are taxable income. A "tip pool" can include back-of-house staff but cannot exceed 15% of combined food and drink sales after GST. Mandatory service charges are not tips.

Who it's for: Restaurant managers, owners, and servers setting up or auditing tip distribution.
Shift Totals
Staff (4 people)
Name / RoleHoursWeightGets
Distribution Results
Per Hour (avg)
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Highest Earner
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Lowest Earner
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IRS tip reporting rules apply. This calculator estimates distributions for educational purposes. Consult an accountant for tax compliance.

Restaurant & Tip Pooling Tools

Tools that pair well with this calculator — selected by our team.

Gusto →
$300/ref through PartnerStack — tip pooling, payroll
7shifts →
Restaurant scheduling and tip management
ToolBest ForNetwork
Gusto$300/ref through PartnerStackPartnerStack
7shiftsRestaurant scheduling and tip managementDirect

We may earn a commission if you click above. Calculator is free to use.

Frequently Asked Questions

Is tip pooling legal?

Yes, but with restrictions. Federal law allows tip pooling for employees who customarily and regularly receive tips (back-of-house staff can participate). Employers cannot claim tip credit if participating in a tip pool.

How does tip pooling affect my take-home?

If you're a server, you contribute a portion of tips to the pool and receive a share back. Strong tippers subsidize weak tippers. Your net should be similar — the pool redistributes rather than reduces total tips.

Do managers get tips from tip pools?

Managers and supervisors cannot participate in tip pools unless they regularly receive tips from customers. Employers must clearly disclose tip pooling arrangements.

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