Tip Pool Calculator
Proportional by Hours
Equal Split
Formula
Tip Per Hour = Total Tips / Total Hours; Worker Tip = Worker Hours × Tip Per Hour
Frequently Asked Questions
How does proportional tip pooling work?
Proportional tip pooling divides the total tips based on each worker's hours. The tip per hour is calculated first, then each worker receives tips proportional to their hours worked.
Are pooled tips taxable?
Yes, all tips including pooled tips are taxable income. Employees must report tip income, and employers are required to withhold taxes on reported tips.
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