Restaurant payroll coordination
Best tip pooling and tip payout tools (2026)
By Dan MurphyUpdated 4 min read
What tools do restaurants use for tip pooling and tip payouts?
Restaurants split pooled tips with POS-native tools such as Toast Tips Manager and Square tip pooling, scheduling add-ons from 7shifts and Homebase, or dedicated tools such as TipHaus, Gratuity Solutions and Fourth. Kickfin handles cashless payouts. In Massachusetts, whichever tool you use has to apply the Tips Act: no managers in the pool, and same-day payout.
Tip tools do two jobs: splitting pooled tips by your rules, and paying them out, often at the end of the shift. In Massachusetts both have to follow the Tips Act. Only non-managerial service staff can share in a pool, and tips must be paid out by the end of the same business day. Software can apply those rules for you, but only if you set it up correctly.
How we chose
- Tools that calculate tip pools, pay tips out, or both, checked on their own sites.
- Which POS and payroll systems each one says it works with.
- No pricing or ratings. Some charge per payout, so check who pays the fee.
The list at a glance
| # | Name | Type | Works with |
|---|---|---|---|
| 1 | 7shifts tip pooling and payouts | Tip pooling and payouts | Toast, TouchBistro, Square, Revel, GoTab |
| 2 | Toast Tips Manager | Tip pooling (POS-native) | Toast POS |
| 3 | Homebase Tip Manager | Tip pooling | POS that syncs with Homebase |
| 4 | Square tip pooling | Tip pooling (POS-native) | Square POS |
| 5 | Kickfin | Tip payouts | POS integrations |
| 6 | TipHaus | Tip pooling and payouts | POS and payroll exports |
| 7 | Gratuity Solutions | Enterprise gratuity automation | Many POS and payroll systems |
| 8 | Fourth Tip Management | Tip pooling and payouts | Fourth platform |
1.7shifts tip pooling and payouts
Tip pooling and payouts · Toast, TouchBistro, Square, Revel, GoTab
Custom tip pools calculated from 7shifts timecards, with payouts sent to employee debit accounts. Automated pools need a supported POS, and pooled tips can be exported to payroll.
Best for: restaurants already scheduling in 7shifts.
Worth knowing: tips paid out through 7shifts are not taxed there unless you also use 7shifts Payroll, so make sure they reach payroll.
2.Toast Tips Manager
Tip pooling (POS-native) · Toast POS
Custom tip-pool rules, automated distribution and tip reporting inside Toast. Toast's separate Pay Card and PayOut product gives staff access to tips at the end of their shift.
Best for: Toast restaurants that want tips handled in the same system as sales and payroll.
Worth knowing: Pay Card requires Toast Payroll and is not available in every state, so check yours.
3.Homebase Tip Manager
Tip pooling · POS that syncs with Homebase
Pulls tips from your POS, splits them and adds tip-outs to timesheets automatically.
Best for: small restaurants already on Homebase.
Worth knowing: it distributes by tracked hours, so check that matches your written tip policy.
4.Square tip pooling
Tip pooling (POS-native) · Square POS
Square's tip pooling splits tips by recipient, by transaction, by hours worked or by percentage.
Best for: Square restaurants with a simple pool.
Worth knowing: it requires specific Square plans.
5.Kickfin
Tip payouts · POS integrations
Sends cashless tip payouts straight to employees' own bank accounts when their shift ends.
Best for: restaurants that want to stop handling cash tips at close.
Worth knowing: it pays tips out but does not decide the split, so your pool rules still need to be right.
6.TipHaus
Tip pooling and payouts · POS and payroll exports
Automates tip pooling and sharing, QR-code tipping and daily tip payouts, with exports to payroll.
Best for: independents and groups that want a dedicated tip tool that works with their existing POS.
Worth knowing: check that it exports cleanly to the payroll system you use.
7.Gratuity Solutions
Enterprise gratuity automation · Many POS and payroll systems
Automates gratuities from start to finish: pulling data from the POS, calculating, validating, paying out and exporting to payroll.
Best for: multi-unit and enterprise groups with complex tip and service-charge rules.
Worth knowing: more than a single restaurant typically needs.
8.Fourth Tip Management
Tip pooling and payouts · Fourth platform
Tip pooling, tip-outs and service charges with digital payouts, from the company behind HotSchedules.
Best for: groups already using Fourth or HotSchedules.
Worth knowing: built for larger operators.
Set the rules before the tool
Write your tip policy first: who is in the pool, how it is split, and how service charges are handled. Then check that the tool can apply it exactly. The Massachusetts labor laws list covers the Tips Act rules any tool has to follow.
Every tip paid out still has to reach payroll correctly. Our tipped payroll workflow covers that step.
Where to go next
- Tipped payroll workflow: tips from POS to paycheck
- Best restaurant payroll software: where the tips end up
- Restaurant payroll coordination: BOHO reconciles tips before each run
Keep reading
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