Tip pools help you collect and distribute tips fairly. This article explains how tip pools connect to payroll, what to expect in your payroll summary, and how to fix common issues like missing or late pools.
A tip pool moves through three statuses: Draft → Ready for payroll → Applied to payroll. Only pools in Ready for payroll status are imported into payroll.
Step 1: Finalize your tip pool
If you haven’t yet, finalize your tip pool.
Step 2: Run payroll with tip pools
During a payroll run, payroll automatically includes all pools marked Ready for payroll that fall within the current pay schedule window.
This ensures every employee’s distributed tips are tracked correctly alongside their wages. Here’s how to get started:
In Admin View, go to Payroll.
In the Upcoming tab, start payroll for the same period.
In the Advanced settings section, make sure to check Apply tip pools created in Workstream.
Review the payroll summary. Each employee’s tips appear as separate line items:
Cash tips: Amounts employees already received directly (recorded only, not paid again through payroll).
Paycheck tips: Amounts to be paid out via payroll.
Classic payroll version
New payroll version
Frequently Asked Questions (FAQs)
Q: Why don’t I see my tip pool in payroll?
Q: Why don’t I see my tip pool in payroll?
A: To make sure your tip pools show in payroll, make sure that:
The tip pool is in Ready for payroll status.
The date range overlaps with your payroll period.
If the pool was created after you started your payroll draft, create a new draft payroll so it can be picked up.
Q: What if I created a pool late or after payday?
Q: What if I created a pool late or after payday?
A: Late or backdated pools won’t automatically roll into future payrolls. If you need to pay them out, run an off-cycle payroll and apply the pool there.
Q: What’s the difference between Cash tips and Paycheck tips in payroll?
Q: What’s the difference between Cash tips and Paycheck tips in payroll?
A: Cash tips are tips already given directly to the employee; they’re recorded for compliance and reporting, but not re-paid in payroll.
Paycheck tips are distributed via payroll and appear in the employee’s paycheck.
Q: Can I run payroll with tip pools only?
Q: Can I run payroll with tip pools only?
A: Yes. If you want to pay out tips separately from regular wages, you can run an off-cycle payroll just for tip pools.
Q: Will multiple pools for the same period all be included?
Q: Will multiple pools for the same period all be included?
A: Yes. If several tip pools overlap with the payroll period, they’ll all be imported as long as they’re Ready for payroll.
Q: If a pool wasn’t included in payroll, what happens?
Q: If a pool wasn’t included in payroll, what happens?
A: It remains Ready for payroll and can be included in a future or off-cycle run, depending on your payroll schedule and deadlines.