Quick Overview
- 1#1: 7shifts - Automates tip pooling, tracking, splitting, and payouts for restaurant and hospitality teams.
- 2#2: Toast - Manages tip calculations, reporting, and distribution directly within its cloud-based restaurant POS system.
- 3#3: Deputy - Facilitates tip entry, pooling, and fair distribution tied to employee schedules in hospitality.
- 4#4: Homebase - Provides free scheduling and time tracking with integrated tip pooling and payout tools.
- 5#5: When I Work - Enables tip logging, team pooling, and automated distribution through its scheduling app.
- 6#6: Fourth - Offers enterprise-grade tip tracking, compliance, and distribution for large restaurant operations.
- 7#7: Revel Systems - Supports customizable tip splitting, reports, and payouts in its iPad-based POS platform.
- 8#8: TouchBistro - Handles real-time tip calculations, pooling, and staff distribution via its restaurant POS.
- 9#9: Square - Simplifies tip collection, reporting, and basic distribution for small restaurants and services.
- 10#10: Gusto - Tracks tipped wages, ensures compliance, and distributes tips accurately through payroll processing.
Tools were evaluated based on robust features (including automation, reporting, and compliance), user experience (such as integration ease and intuitiveness), and overall value, ensuring they meet the diverse needs of restaurants, hotels, and other service-based sectors.
Comparison Table
Tip distribution software simplifies fairness and accuracy for hospitality teams, and our comparison table breaks down tools like 7shifts, Toast, Deputy, Homebase, When I Work, and more. It explores key features, pricing models, and usability, helping readers identify the best fit for their business's unique needs.
| # | Tool | Category | Overall | Features | Ease of Use | Value |
|---|---|---|---|---|---|---|
| 1 | 7shifts Automates tip pooling, tracking, splitting, and payouts for restaurant and hospitality teams. | specialized | 9.7/10 | 9.8/10 | 9.3/10 | 9.1/10 |
| 2 | Toast Manages tip calculations, reporting, and distribution directly within its cloud-based restaurant POS system. | enterprise | 8.7/10 | 9.2/10 | 8.4/10 | 8.0/10 |
| 3 | Deputy Facilitates tip entry, pooling, and fair distribution tied to employee schedules in hospitality. | specialized | 8.2/10 | 7.8/10 | 8.5/10 | 7.9/10 |
| 4 | Homebase Provides free scheduling and time tracking with integrated tip pooling and payout tools. | specialized | 8.3/10 | 8.1/10 | 9.0/10 | 8.5/10 |
| 5 | When I Work Enables tip logging, team pooling, and automated distribution through its scheduling app. | specialized | 7.2/10 | 7.0/10 | 8.1/10 | 6.8/10 |
| 6 | Fourth Offers enterprise-grade tip tracking, compliance, and distribution for large restaurant operations. | enterprise | 8.1/10 | 8.7/10 | 7.4/10 | 7.8/10 |
| 7 | Revel Systems Supports customizable tip splitting, reports, and payouts in its iPad-based POS platform. | enterprise | 7.4/10 | 8.1/10 | 7.2/10 | 6.8/10 |
| 8 | TouchBistro Handles real-time tip calculations, pooling, and staff distribution via its restaurant POS. | enterprise | 7.2/10 | 7.8/10 | 8.1/10 | 6.4/10 |
| 9 | Square Simplifies tip collection, reporting, and basic distribution for small restaurants and services. | other | 7.8/10 | 7.2/10 | 9.0/10 | 8.5/10 |
| 10 | Gusto Tracks tipped wages, ensures compliance, and distributes tips accurately through payroll processing. | enterprise | 7.6/10 | 7.2/10 | 8.5/10 | 7.0/10 |
Automates tip pooling, tracking, splitting, and payouts for restaurant and hospitality teams.
Manages tip calculations, reporting, and distribution directly within its cloud-based restaurant POS system.
Facilitates tip entry, pooling, and fair distribution tied to employee schedules in hospitality.
Provides free scheduling and time tracking with integrated tip pooling and payout tools.
Enables tip logging, team pooling, and automated distribution through its scheduling app.
Offers enterprise-grade tip tracking, compliance, and distribution for large restaurant operations.
Supports customizable tip splitting, reports, and payouts in its iPad-based POS platform.
Handles real-time tip calculations, pooling, and staff distribution via its restaurant POS.
Simplifies tip collection, reporting, and basic distribution for small restaurants and services.
Tracks tipped wages, ensures compliance, and distributes tips accurately through payroll processing.
7shifts
specializedAutomates tip pooling, tracking, splitting, and payouts for restaurant and hospitality teams.
Schedule-linked tip distribution that automatically bases shares on verified shift hours, ensuring equity without manual hour tracking.
7shifts is a comprehensive restaurant workforce management platform with robust tip distribution capabilities, enabling managers to set up tip pools, declare tips via POS integrations or manually, and automate distributions based on hours worked, roles, or custom rules. It ensures compliance with tip reporting laws through detailed audits, employee transparency via the mobile app, and seamless payouts integrated with payroll systems. This makes it a top choice for restaurants handling complex tip structures like pooled or tipped-out systems.
Pros
- Seamless integration with scheduling and time tracking for accurate, fair distributions
- POS sync and automated calculations reduce manual errors
- Employee self-service via mobile app for transparency and disputes
Cons
- Higher-tier plans required for advanced tip features
- Initial setup can be time-intensive for complex pools
- Pricing scales with locations, less ideal for tiny operations
Best For
Mid-sized to large restaurants needing integrated scheduling, time tracking, and compliant tip distribution in one platform.
Pricing
Essential ($29.99/location/month), Pro ($43.99/location/month with basic tips), Premium ($52.99/location/month for full tip pooling); billed annually.
Toast
enterpriseManages tip calculations, reporting, and distribution directly within its cloud-based restaurant POS system.
Real-time tip pooling powered by POS transaction data for instant, accurate distributions without manual entry
Toast is a comprehensive cloud-based POS and restaurant management platform that includes advanced tip distribution capabilities, allowing for automated tip pooling, splitting, and reporting based on customizable rules like hours worked or sales volume. It captures tips directly from POS transactions, supports multiple pool types (e.g., server, bartender, support staff), and integrates with payroll systems for seamless payouts. The system provides real-time dashboards and compliance-ready reports to ensure accurate and fair tip distribution.
Pros
- Seamless integration with Toast POS for real-time tip tracking and accuracy
- Flexible tip pooling rules and automated distribution options
- Robust reporting and easy payroll exports for compliance
Cons
- High cost tied to full POS subscription, not ideal for standalone tip use
- Steep learning curve for non-POS users
- Limited advanced customizations without higher-tier plans
Best For
Mid-sized restaurants and chains already using or planning to adopt Toast POS that need integrated, scalable tip distribution.
Pricing
Starts at $165/month per location (Growth plan, billed annually) including tip features; hardware and add-ons extra; custom enterprise pricing available.
Deputy
specializedFacilitates tip entry, pooling, and fair distribution tied to employee schedules in hospitality.
Automatic tip distribution synced directly to verified shift hours and roles
Deputy is a comprehensive workforce management platform primarily focused on scheduling, time tracking, and communication, with built-in tip distribution features tailored for hospitality and service industries. It enables managers to set up tip pools, track reported tips, and automatically distribute them based on worked hours, roles, or custom rules. While not a standalone tip solution, its integration with payroll and compliance tools makes it suitable for businesses handling tips alongside shift management.
Pros
- Seamless integration with scheduling and time tracking for accurate tip allocation
- Mobile app supports easy tip reporting by staff
- Compliance features for tip regulations and reporting
Cons
- Tip distribution is secondary to core scheduling functions, lacking advanced customization
- Pricing reflects full-suite capabilities, which may be overkill for tip-only needs
- Limited advanced analytics for tip trends compared to specialized tools
Best For
Hospitality businesses using Deputy for scheduling who want integrated tip pooling without switching platforms.
Pricing
Custom pricing starts at ~$3.50/user/month for Essentials plan, scaling to $6+/user/month for premium features; location-based fees apply.
Homebase
specializedProvides free scheduling and time tracking with integrated tip pooling and payout tools.
Automated tip pooling and distribution directly tied to verified shift hours from integrated time clocks
Homebase is a comprehensive workforce management platform with built-in tip distribution tools designed for hourly tipped workers in hospitality and service industries. It supports tip pooling, automated distribution based on hours worked or custom rules, and generates reports for payroll compliance and tax purposes. The software integrates seamlessly with its scheduling and time-tracking features, allowing managers to handle tips alongside daily operations efficiently.
Pros
- Seamless integration with scheduling and time tracking for accurate tip allocation
- User-friendly mobile app for easy tip reporting and approvals
- Generates compliant reports for taxes and payroll
Cons
- Limited advanced customization for complex pooling formulas
- Best features require paid plans and full platform adoption
- Primarily geared toward US-based businesses with regional compliance focus
Best For
Small to medium-sized restaurants and hospitality teams seeking an all-in-one tool with reliable basic tip distribution.
Pricing
Free basic plan; Essentials starts at $29.99/location/month (billed annually); higher tiers up to $99.99/location/month for advanced features.
When I Work
specializedEnables tip logging, team pooling, and automated distribution through its scheduling app.
Automatic tip distribution calculated directly from verified shift hours and roles
When I Work is a workforce scheduling and management platform that includes tip distribution features tailored for tipped industries like restaurants and hospitality. Managers can enter daily sales, set up tip pools, and automatically distribute tips based on hours worked, shift roles, or custom declarations tracked via the integrated time clock. While not a standalone tip solution, it combines tip management with scheduling, communication, and attendance tools for streamlined operations.
Pros
- Seamless integration with scheduling and time tracking for accurate tip allocation
- Supports multiple pool types including server pools and house pools
- Mobile app enables easy tip declarations and approvals on the go
Cons
- Tip distribution requires higher-tier plans, increasing costs
- Limited advanced customization for complex tip-splitting rules
- Reporting on tips is basic compared to dedicated payroll tools
Best For
Hospitality businesses using When I Work for scheduling who need integrated tip pooling without switching platforms.
Pricing
Free for up to 75 users; paid plans from $2/user/month (Essentials) to $3.50+/user/month (higher tiers with full tip features), billed annually.
Fourth
enterpriseOffers enterprise-grade tip tracking, compliance, and distribution for large restaurant operations.
TipSync module for automated, compliant tip pooling across complex distribution rules
Fourth is a comprehensive workforce management platform designed for the hospitality industry, with specialized tip distribution features that automate pooling, reporting, and allocation. It integrates with major POS systems to capture tip data accurately and ensures compliance with IRS and state regulations. The software supports various distribution models, from equal splits to performance-based allocations, making it suitable for restaurants and chains.
Pros
- Strong regulatory compliance tools for tip reporting
- Seamless integrations with popular POS like Toast and Aloha
- Scalable for multi-location enterprises
Cons
- Complex interface with steep learning curve
- High cost for smaller operations
- Overkill features for basic tip needs
Best For
Mid-to-large hospitality chains needing integrated tip distribution within broader workforce management.
Pricing
Custom enterprise pricing, typically $4-8 per employee/month plus setup fees and minimums.
Revel Systems
enterpriseSupports customizable tip splitting, reports, and payouts in its iPad-based POS platform.
Customizable tip pooling with automatic distribution based on employee roles and shifts
Revel Systems is a comprehensive cloud-based POS platform for restaurants and retail that includes integrated tip distribution features for tracking, pooling, and reporting employee tips. It supports customizable tip pools based on roles, hours worked, or sales contributions, with automatic calculations and exports to payroll systems. While not a standalone tip solution, it excels in real-time tip visibility within a full POS ecosystem, making it suitable for hospitality businesses seeking unified operations.
Pros
- Seamless integration with POS for real-time tip tracking and pooling
- Flexible configuration for tip splits by role, hours, or sales
- Detailed reporting and easy payroll exports
Cons
- High cost primarily for full POS, not just tips
- Steep learning curve for non-POS users
- Limited standalone functionality without Revel ecosystem
Best For
Restaurants and bars already using Revel POS that need robust, integrated tip management without separate software.
Pricing
Starts at $99/month per terminal for Core plan, up to $289/month for Elite, plus 2.3-2.6% processing fees and hardware costs.
TouchBistro
enterpriseHandles real-time tip calculations, pooling, and staff distribution via its restaurant POS.
Dynamic tip pooling that automatically adjusts shares based on shifts, hours worked, and role-specific rules
TouchBistro is a full-featured restaurant POS system that includes tip management and distribution capabilities as part of its staff and payroll tools. It supports customizable tip pooling, automatic tip calculations based on sales and hours, and generates detailed reports for payroll export. While not a standalone tip distribution solution, it excels in integrating tip handling directly with point-of-sale transactions for restaurants.
Pros
- Seamless integration with POS for accurate tip capture from sales
- Flexible tip pooling options including percentage-based and fixed amounts
- Detailed tip reports and exports compatible with payroll systems
Cons
- Not a dedicated tip distribution tool; requires full POS subscription
- Pricing is high for operations seeking only tip management
- Customization limited compared to specialized tip software
Best For
Full-service restaurants using TouchBistro POS who want integrated tip distribution without separate software.
Pricing
Starts at $69/month per terminal (billed annually); tip features included in core POS plans, with custom enterprise pricing.
Square
otherSimplifies tip collection, reporting, and basic distribution for small restaurants and services.
Real-time tip assignment and employee-specific reporting directly tied to payment transactions
Square is a versatile point-of-sale (POS) system that includes basic tip management and distribution tools, primarily for restaurants and service-based businesses. It allows servers to record tips directly on transactions, tracks tips by employee via its Team Management app, and generates reports for manual or payroll-integrated distribution. While not a dedicated tip distribution platform, it integrates seamlessly with Square's payment processing for accurate tip capture and splitting.
Pros
- Intuitive interface with mobile app for quick tip entry and tracking
- Seamless integration with POS and payments for real-time accuracy
- Affordable with no upfront software costs and robust reporting
Cons
- Limited advanced tip pooling rules compared to specialized software
- Requires manual distribution or payroll integration for payouts
- Transaction fees can add up for high-volume tip-heavy businesses
Best For
Small to medium restaurants and bars seeking simple, integrated tip tracking within a full POS ecosystem.
Pricing
Free POS software with transaction fees of 2.6% + 10¢; Square for Restaurants plans start at $0/month for basic (single location) up to $60/month for advanced features.
Gusto
enterpriseTracks tipped wages, ensures compliance, and distributes tips accurately through payroll processing.
Automatic tip allocation and IRS-compliant reporting integrated directly into payroll runs
Gusto is a full-service payroll and HR platform that includes tip reporting and distribution features tailored for tipped industries like restaurants and hospitality. Employees can log tips via the mobile app, with options for pooled tips and automatic allocation to paychecks, ensuring compliance with IRS tip reporting rules. It integrates tip data seamlessly into payroll processing, handling tax withholdings and credits effectively, though it's not a standalone tip solution.
Pros
- Seamless integration of tips into payroll with automatic tax compliance
- Employee-friendly mobile app for quick tip reporting
- Supports tip pooling and credits for hospitality businesses
Cons
- Tip features are secondary to core payroll functions, lacking deep specialization
- Pricing is per-employee and scales with full payroll use, not cost-effective for tip-only needs
- Limited integrations with specialized POS systems for automated tip imports
Best For
Small to medium businesses already using Gusto for payroll that need reliable basic tip distribution without switching platforms.
Pricing
Starts at $40 base + $6/employee/month (Simple plan); higher tiers $80 + $12/employee (Plus) or custom (Premium); free for contractors.
Conclusion
The top tools excel at tip distribution, but 7shifts stands out as the best, with robust automation for pooling, tracking, and payouts tailored for hospitality teams. Toast impresses with seamless integration into restaurant POS systems, while Deputy offers schedule-aligned tip management, making each a strong choice for specific needs. Together, they highlight the range of solutions available to optimize tip workflows.
Start managing tips efficiently—explore 7shifts to simplify pooling, tracking, and payouts for your team today.
Tools Reviewed
All tools were independently evaluated for this comparison