🤝 Tip Pool Calculator
Split a shared tip pool fairly by hours worked, or evenly among the team.
How This Is Calculated
By hours worked: each person's share = Total Pool × (their hours ÷ total hours worked by everyone). Split evenly: Total Pool ÷ number of people. Many restaurants and bars use hours-based splitting since it accounts for staff who worked partial shifts.
Frequently Asked Questions
Should tips be split evenly or by hours worked?
Many restaurants and bars split tips by hours worked since it accounts for partial shifts fairly. Some
teams prefer an even split for simplicity — check your workplace's policy.
Guide: understanding your result
- Tip pools are usually split by hours worked, by points per role, or by a combination of both.
- Under the FLSA, employers — including managers and supervisors — may not keep any part of employees' tips.
- Back-of-house staff (such as cooks and dishwashers) may share in a tip pool only when the employer pays the full minimum wage and takes no tip credit; state laws may be stricter.
Worked example
A $1,200 pool split by hours among three servers (8, 6 and 6 hours) pays $480, $360 and $360 — $60 per hour worked.
Common mistakes to avoid
- Including managers or owners in the pool.
- Not documenting the distribution method in writing.
Frequently asked questions
Are pooled tips taxable?
Yes. Tips are taxable income and must be reported; employees report tips to the employer, and the employer withholds tax on reported tips.
Official sources
Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.
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