Managing tips in a cashless world
In a world where an increasing number of venues are making the decision to go cashless, and consumers are now far less likely to carry cash, how can you manage tips and service charges made electronically, and ensure the correct distribution to staff members?
Most people are familiar with the method of adding a tip of gratuity to their bill on a card machine, however you will still want a way of tracking these amounts and keeping them separate from your revenue, which your EPOS can manage for you.
There are three main ways you can add tips using Tabology’s hospitality EPOS - any good hospitality-focused EPOS system should give you similar options.
1. Adding a tip on the EPOS
The most straightforward way, you simply press the ‘tip’ button, which allows you to enter the value of the gratuity when you’re cashing off an order. This is perfect for when a specific amount has been left, rather than when someone has rounded up their bill and you need to calculate how much the tip is.
2. Convert an overpayment to a tip
In contrast to the method above, this is great for when a consumer has rounded up their bill, so you don’t want to spend the time working out exactly what the tip value is. By adding the full value paid when cashing off on order, you will see a ‘convert to tip’ button next to the change value. Allowing you to register that someone has left a tip.
3. Set a service charge
You can also choose to automatically add a service charge to an order. Setting your own criteria, which a table must meet before this happens, e.g. over a certain number of covers. You can also amend the % added to suit you and your venue, and easily remove the service charge for a particular tab if needed.
4. Take tips on mobile orders
If you set a service charge, this will be shown on mobile orders, either as an optional or mandatory charge depending on your settings. You can also allow customers to add a tip to the value of their choosing with our tip slider, selecting their preferred percentage.
So great, you’ve hopefully got some easy options to ensure you’re able to register in the EPOS that you’ve received some tips. However, in order to pass these payments onto your staff, you need a way of tracking and identifying who is owed what.
If your staff each keep their own tips, you can assign a tip owner to any tab or table with Tabology’s EPOS. You can then create a tip report on either a daily / weekly / monthly basis, giving you a full breakdown of who is owed what.
Also with our Xero integration, you can post to a specific tips account, which will keep track of what has been received so you know what needs paying out to staff.
Remember that as an employer, you are responsible for ensuring staff pay any relevant tax & NI on their tips if you are collating them and paying them out, in addition to your own business contributions. If you’re a Xero user, our integration will allow you to pay out via payroll, making all the necessary subtractions. Or simply include the tips in your usual payroll method.
If all this sounds like too much admin, you could look at an external tip management solution, such as
TiPJAR. This takes the responsibility away from you as a business completely, and removes the need for you to pay any employers NI contributions on the tips. Consumers leave tips for staff by either scanning a QR on the bottom of their receipt, or you can install a contactless reader at your bar or exit. Venues using our mobile ordering solution can easily add a TiPJAR, or similar link to the confirmation page once an order has been placed.
With the right EPOS you can easily manage and keep track of tips in a cashless world. If you’re interested in finding out more, get in touch.
* Financial Times, 5th May 2022
