Tip Pooling Calculator: US FLSA vs Australia
Split a tip pool by hours and role points, deduct card fees, and flag pools that break federal FLSA tip-credit and manager rules. Every formula and assumption is listed below. Change any default that does not match your venue.
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Tip pool split by hours × points (US FLSA / AU)
| Role | Hours | Points | Share | Per hour |
|---|---|---|---|---|
| Servers | US$2,040.49 | US$17.00 | ||
| Bartenders | US$1,020.24 | US$17.00 | ||
| Bussers / runners | US$425.10 | US$8.50 | ||
| Kitchen (cooks, dish) | US$714.17 | US$5.10 | ||
| Managers / supervisors | US$0.00 | – |
Pool after card fees
US$4,200.00
deducted US$0.00
Compliance flags
1 to check
- No tip credit and kitchen staff included: the FLSA allows a "nontraditional" pool with BOH only if every worker gets a cash wage of at least $7.25/h. State law can be stricter.
Formula & assumptions
Pool after fees = total tips − (card tips × card fee %). Each person's share = their hours × role points × (pool after fees ÷ total weighted hours). Points are your policy choice.
US federal rules (FLSA), checked 4 Nov 2026 at DOL Fact Sheet #15: minimum cash wage with a tip credit is $2.13/h and the maximum credit is $5.12/h against the $7.25 federal minimum. With a tip credit, mandatory pools are limited to customarily tipped staff. Without one (cash wage ≥ $7.25), a pool may include BOH. Managers, supervisors and the employer may never keep pooled tips. Card tips may be reduced only by the actual card processing fee. State law can be more protective. This tool checks federal rules only.
Sources: DOL WHD Fact Sheet #15; ATO: receiving cash for work you do; FWO: requirements to spend or pay back money. All checked 4 Nov 2026. General information, not legal advice.
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Methodology
- Pool after fees = total tips − (card tips × card fee %). Share = hours × role points × (pool after fees ÷ total weighted hours).
- US flags follow DOL Wage and Hour Division Fact Sheet #15 (checked 4 Nov 2026): $2.13 minimum cash wage and $5.12 maximum tip credit against $7.25; with a tip credit, mandatory pools only include customarily tipped employees; without one, back-of-house can be included if everyone gets at least $7.25 cash wage; managers, supervisors and the employer may not receive pooled tips; card tips may be reduced only by the actual processing fee.
- Australia: we found no official formula for splitting tips. The ATO says tips must be declared as income and tip-jar sharing is fine; the FWO says employers cannot unreasonably require employees to pay money back for the employer's benefit (checked 4 Nov 2026). Award minimum wages apply regardless of tips.
- Federal US rules only. Many states (for example California) ban tip credits or have stricter rules.
Sources
- US DOL WHD Fact Sheet #15: Tipped employees under the FLSA (checked 4 November 2026)
- ATO: receiving cash for work you do (declaring tips) (checked 4 November 2026)
- Fair Work Ombudsman: requirements to spend or pay back money (checked 4 November 2026)
Related comparisons
FAQ
Can kitchen staff share in a US tip pool?+
Under the federal FLSA, yes, but only if the employer does not take a tip credit and pays everyone at least $7.25 an hour in cash wages (DOL Fact Sheet #15, checked 4 Nov 2026). State law can be stricter.
Can managers be in the tip pool?+
Under the FLSA, no. Managers and supervisors may keep only tips they receive directly for service they solely provide, and may not take from a pool.
Can I deduct card fees from tips?+
Under the FLSA, only the actual percentage the card processor charges you, and it cannot take wages below minimum. Some states ban this. In Australia, state any deduction in your written tips policy.
Does Australia have a tip credit?+
We found no tip-credit mechanism in Fair Work guidance. Award minimum rates must be paid in full, and tips sit on top.
General information only. Not payroll, legal or financial advice. Check figures with your accountant or payroll provider. How we research.