How to Use Teams & Roles to Manage Tips

This guide shows you how to use the Merchant Manager Teams & Roles feature to manage and distribute tips to your employees.

In the coffee industry, it’s common to include tips in employee paychecks. With the joe Point of Sale and Merchant Manager tools, you can easily handle this and stay compliant with state and federal rules.

Scenario: Setting Up Tip Reporting in a Coffee Shop

Example:
Mario owns a coffee shop in Seattle with 15 employees (baristas, cashiers, and managers). He wants to create a clear system for reporting and distributing tips as the business grows

Step 1: Use the POS for Automatic Tip Calculations

The joe POS system automatically:

• Adds up hourly wages + tips
• Calculates the correct tax withholdings

Step 2: Use Merchant Manager Tools

Here are the key tools to help manage your team:

• Barista Clock In at Register
  Employees clock in directly at the POS.
• Tip Allocation Report
  Shows how tips are divided among employees.
• Shift Report
  Tracks when employees clock in and out.
• Employee Setup
  Easily create or edit employee roles.

Step 3: Real-Time Tip Tracking

Tips are split between employees who:

• Are clocked in during the hour the tip was earned
• Completed an order during that time

You can view, adjust, and confirm tip distribution in real time using the Merchant Manager.

Example: How Tips Are Allocated Among Employees

Background:

• Employees: Alex, Casey, and Jordan
• Total Tips Earned: $100
• Shift Duration: 4 hours
• Tip Allocation Method:
  • Tips are split between employees who were clocked in during the hour the tip was earned
  • Only employees who completed an order during that time are eligible

Step-by-Step Allocation:

1. Shift Overview:
   • All three employees (Alex, Casey, and Jordan) worked the full 4-hour shift.
2. Order Completion and Tips Accumulation:
   • Throughout the shift, each employee completed a number of orders and tips are accumulated. 

Tip Allocation Table

Conclusion

Using the joe Operating System, tip allocation for a 4-hour shift with $100 in total tips ensures that each employee—Alex, Casey, and Jordan—receives a fair share based on their participation during the shift.

When tips are divided by hour and based on completed orders, the system calculates and distributes earnings transparently. In this example, each employee receives approximately $33.32, assuming equal participation.

A detailed hour-by-hour breakdown makes it easy to track and verify how tips are shared, helping ensure a fair, accurate, and transparent process for both employees and management.

Tracking, Editing, and Creating Shifts

The joe Operating System includes a powerful time-tracking tool that helps you manage employee shifts with ease.

Clocking In and Out

Employees can clock in and out using a secure and intuitive interface. Once clocked in, their hours are automatically tracked and recorded in the system—no manual entry needed.

Real-Time Shift Reports

Managers can view time reports in real-time to:

• Monitor attendance
• Verify shift start and end times
• Ensure employees are working their scheduled hours

Editing Shifts

If an employee forgets to clock in or out, managers can:

• Manually adjust shift times
• Add or remove hours as needed
• Ensure all hours are accurate before payroll processing

This keeps your records clean, compliant, and up to date.

Accessing Shift Management

To manage employee shifts, visit the Merchant Manager here:
👉 Merchant Manager – Teams & Roles → Shifts

Full Tip Report: Exporting for Payroll

The joe Operating System makes it easy to manage and export tip data with the Merchant Manager Teams & Roles Tip Report. You can generate a detailed report for any date range, including a full two-week payroll period, and then import it directly into your payroll system.

Example: 2-Week Tip Report Workflow

Here’s how to generate and use the tip report for a two-week pay period:

✅ Step 1: Generate the Report

1. Log in to the joe Operating System.
2. Go to the Reports section.
3. Select "Time and Attendance."
4. Set the date range to cover the desired two-week period.
5. Click Generate Report.

✅ Step 2: Review and Export

• Review the report for accuracy.
• Make sure all shifts and tip allocations are correct.
• Export the report in your preferred format:
  • Excel (.xlsx)
  • PDF

✅ Step 3: Import into Payroll Software

1. Open your payroll software.
2. Use the “Import Data” option.
3. Upload the exported report file from your computer.

✅ Step 4: Verify and Finalize

• Double-check the imported data.
• Make any necessary adjustments (if hours or tips need correcting).
• Finalize the payroll run to ensure employees are paid accurately.

Cash Out from the Till: Taking Tips at the End of a Shift

In many coffee shops, it’s common practice for employees to cash out their tips directly from the till at the end of their shift. The joe Operating System supports this workflow, making it easy to track and record tips taken in cash.

How It Works

At the end of their shift, baristas can:

• Count the tips they earned (as recorded in the system)
• Take the corresponding amount from the till (cash drawer)
• Confirm the cash-out with a manager or shift lead

Why Use This Method?

✅ Gives baristas immediate access to earned tips
✅ Reduces tip entry steps in payroll (since they’re paid out in real time)
✅ Keeps tip reporting accurate and transparent

Track and Collect Barista Tips

To learn more about setting up and tracking this method, visit our full guide:
👉 How to Track & Collect Barista Tips