Tip distribution software, often known as tip pooling or gratuity management software, streamlines the process of distributing tips to service industry workers at the end of their shifts, minimizing the need for cash payouts. Primarily used by restaurants, these tools save time by automatically tracking hours worked and depositing tips directly into employees' bank accounts. This reduces payroll complexities and instances of tip discrepancies caused by errors or theft, while also speeding up the payment process. Many tip distribution solutions enable managers to oversee tips across multiple locations and offer reporting features to help mitigate risks. Typically, these systems function as standalone solutions that integrate with restaurant POS systems or management software, though they may also be part of a broader platform's offerings.
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