PayJar
US

Tip-out calculator: how much do I keep?

Bussers, bar, food runners: how much of tonight’s tips goes to them, and what’s left for you? Enter your tips, your sales and each tip-out to see what you keep and what you made per hour.

Your shift

What you rang up this shift. Only needed for a tip-out on sales.
Who you tip out One line per person or station. Leave the amount empty to skip a line.
Before tips. The federal tipped wage is $2.13.

Result

You keep

$221.90
Your tipsCash $96.00 · card $164.00$260.00
Bussers1.5% of $1,270.00 in sales−$19.05
Bar1% of $1,270.00 in sales−$12.70
Food runners0.5% of $1,270.00 in sales−$6.35
After tip-out$221.90

Tip-out: $38.10, 14.7% of your tips. Your tips came to 20.5% of sales.

Tips per hour$20.17After tip-out, over 11 h
Per hour, with your wage$22.30$245.33 for the shift, $23.43 of it in wages

How the tip-out is figured

  • % of sales: the percent of what you rang up, no matter what you made in tips. 1.5% of $1,270.00 is $19.05.
  • % of tips: the percent of your cash and card tips. 10% of $260.00 is $26.00.
  • Per shift: the same dollars every shift.

What you keep is your tips minus the tip-out, never less than zero: if a tip-out on sales comes to more than your tips, you keep $0.00. Tips per hour is what you keep divided by your hours. Per hour with your wage adds the shift’s wages first: $22.30 an hour in the example.

Questions

How much should a server tip out?
There’s no legal number: each restaurant sets its own. On sales, it’s often 1% to 2% for bussers, about 1% for the bar and 0.5% to 1% for food runners. Other places take a share of tips instead. Ask for your restaurant’s tip-out policy in writing.
Is tip-out based on sales or on tips?
It depends on the house. On sales, you tip out the same even when a table leaves you nothing; on tips, the tip-out moves with what you made. With $1,270.00 in sales and $260.00 in tips, 3% of sales is $38.10 and 15% of tips is $39.00.
Can my employer make me tip out?
Under federal law, yes, with limits. If your employer takes a tip credit, your tips can only go to coworkers who usually get tips, like bussers and bartenders. If it pays at least the full minimum wage before tips, cooks and dishwashers can be included too. Managers, supervisors and the employer can never keep any part of your tips. Some states have stricter rules.
What if my tip-out is more than my tips?
It can happen on a slow night when the tip-out is a percent of sales. Ask your restaurant how it’s figured; your state labor department can tell you what’s allowed. This calculator stops the tip-out at your tips, so you keep $0.00, not less.
Do I report my tips before or after tip-out?
After. The IRS says to report only the tips you receive and keep, and to keep a record of what you paid out and to whom. This isn’t tax advice: for your own case, ask a tax preparer or the IRS.
How do I figure my hourly rate with tips?
Add your wage for the shift and the tips you kept, then divide by your hours. 11 hours at $2.13 is $23.43; with $221.90 in tips kept, that’s $245.33 for the shift, or $22.30 an hour.

More free calculators

General information, not legal or tax advice. Your restaurant sets its tip-out rules, and your state labor department has the final word on what’s allowed.

Sources

Tip-out, figured before you walk out.

Set the rule once and PayJar takes the tip-out off every shift. You see what you keep, shift by shift and for the whole pay period.

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