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Calculate Tips for your team
Setting up your Tip Calculator
How to use Bizimply's Tip Calculator
Save valuable time, reduce costs, and ensure compliance with Irish tipping regulations. Bizimply’s free tip calculator helps hospitality businesses manage tip amounts, distribute them fairly, and stay compliant with payroll and income tax rules. It works for restaurants, fine dining restaurants, tour guides, and any service workers collecting tips from customers.
- Enter the Tip Rate per position.
- Next enter your employees, the position they worked and the total hours they worked in each position.
- Enter the Total TipPot for the period.
- Each employees % of the total tip pot is automatically calculated.
Tip Scheme
What is a tip scheme and why does it matter?
A tip scheme is a special pay arrangement that allows hospitality businesses to fairly distribute tips, service charges, and gratuity among employees. Managed by an independent person responsible for tip distribution, a tip system ensures employees get their fair share while reducing employers’ administrative burden.
A tip system can also help calculate the tip percentage on a total bill or bill amount, making it easy to determine money paid to each service provider or service worker, even for a large group.
Bizimply’s tip calculator streamlines the process so restaurants and other businesses can manage different services and total tip collection efficiently, automatically adding service charges or tips included on behalf of customers.
Income Tax
Tax treatment of employees’ tips
All money paid as tips, whether cash, card, or service charge included, is subject to income tax and proper payroll treatment. Using a tip calculator ensures service workers are taxed fairly, employers stay compliant, and employees’ wages reflect the total tip received.
For example, if a fine dining restaurant collects a service charge automatically added to the total cost of a table, the tip amount can be split between staff according to hours worked or role. This helps service providers receive recognition for excellent service and ensures money is distributed fairly.
Tip Amount
Fair and transparent payments for every shift. Bizimply helps employers decide the tip amount for each person or service provider:
- Allocate tips based on hours worked or agreed rules
- Record money paid to employees in their bank account automatically
- Ensure fair distribution across different services or roles
- Save time with automatic calculations
For example, in a large group, you can add half of the bill amount to calculate a tip amount, or calculate the expected gratuity for excellent service.
Save Time
Streamline tip and payroll management. Bizimply’s tip calculator helps employers split, sign, and record tips automatically in payroll apps. This reduces manual management, ensures compliance, and saves time for restaurant staff, tour guides, and service providers. For even more ways to optimise your operations, check out these 7 Bizimply scheduling tips you probably didn’t know.
It also helps calculate:
- Obligatory minimum tip or recommended percentage
- Total tip for table or bill
- Money paid to each employee based on hours worked or role
With free tools and clear details, employees feel respected, customers get confidence their tips are fair, and employers avoid mistakes with tax or PRSI contributions.
Distributed Fairly
Build trust with transparent tip arrangements. Employees want respect and to know their money is distributed fairly. Bizimply ensures tips are:
- Split based on hours worked, role, or agreed rules
- Managed by an independent person for transparency
- Paid through compliant payroll apps and recorded in a bank account
A fair system improves staff retention, morale, and excellent service, ensuring customers feel appreciated for leaving a gratuity.
FAQs
What is a tip scheme?
A tip scheme ensures service workers receive money fairly for tips, service charges, and gratuity, with clear income tax treatment.
Do tips count towards PRSI or income tax?
Yes. Using a tip calculator ensures all money paid is processed correctly and compliant with tax rules.
How can I calculate a tip for a large group?
Our calculator can split the total tip based on bill amount, tip percentage, or even add half for excellent service.
Why is fairness important?
Fair distribution shows respect, reduces disputes, and keeps service workers motivated to deliver great service, whether in restaurants, tour guides, or other countries.
Tips made simple
Bizimply helps employers reduce costs, ensure compliance, save time, and fairly distribute tips – all while giving service workers the money they deserve.
Get to know Bizimply. Our product experts will guide you through our solution with a 15-minute Zoom demo.
