Skip to main content

Managing Tips

Learn how to add, settle, and manage tips in DaySmart, including correcting assignments and processing tips through payroll.

Kyle Goodman avatar
Written by Kyle Goodman
Updated this week

📝 Overview

These instructions explain how to manage tips in DaySmart, including adding tips during checkout, settling withheld tips so employees can receive them, and correcting tip assignments if they were applied to the wrong employee. Tips allow employees to record gratuities on client tickets. There are two types of tips:

  • Direct Tip: Paid directly to the employee. Not shown on the client receipt and not included in payroll totals, but payroll taxes still apply.

  • Withheld Tip: Collected during checkout and held until settled. These appear on client receipts and payroll totals, with taxes applied.

➕ Adding Tips

Adding tips lets you record gratuities for one or more employees on a client’s ticket during checkout.

🖥️ Website

Click the arrow to learn how to add tips on the website

  1. Open an existing ticket.
    ​

  2. Select Check Out.
    ​

  3. Select Proceed to Payments.
    ​

  4. Click Add Tips.
    ​

  5. Select the employee and tip type (Direct or Withheld).
    ​

  6. Enter the tip amount and click Add.
    ​

  7. If more than one employee performed services on the ticket, use + Add Tip option to generate an additional tip field and repeat Steps 5-7.

  8. Close the ticket to finalize.
    ​

📱 Mobile App

Click the arrow to learn how to add tips on the mobile app

  1. Open an existing ticket.
    ​

  2. Select Check Out.
    ​

  3. The Payment & Tips window will appear. Select Add Tip.
    ​

  4. Enter the amount for the tip.
    ​

  5. Select the employee to receive the tip.
    ​

  6. Select whether the tip is Withheld or Settled.

    • Direct: cash is given directly to the employee.

    • Withheld: tip payment is made with some tender other than cash, and the employee receives no direct tip from the client.
      ​

  7. Click Save.
    ​

  8. If more than one employee performed services on the ticket, use the + in the upper right and repeat Steps 5-7.
    ​

  9. Close the ticket as normal to record the sale.

✅ Settling Tips

If a tip is withheld, it is not given to the employee until the tip is settled. It is a good idea to settle tips when the tip money is given to the employee. You can do this by settling the tips one at a time or settling all tips at once.

💡 Please Note:

Tips can also be settled automatically when payroll is processed in your software. When tips are settled through payroll, they are added directly to the employee’s wages and marked as settled on the Tips page. For more information, see our Payroll Overview article.

🖥️ Website

Click the arrow to learn how to settle withheld tips on the website

  1. Select More then click Tips.
    ​

  2. Change the Date Range, Tip Type and Employee(s) as needed.
    ​

  3. Click on the tip or multiple tips you wish to settle and click Settle.
    ​

  4. Select Settle All to finish.
    ​

📱 Mobile App

Click the arrow to learn how to settle withheld tips on the mobile app

  1. Select More.
    ​

  2. Select Tips.
    ​

  3. Use the Search to select the Date Range, Tip Type and Employee(s) as needed.
    ​

  4. Select Settlement.
    ​

  5. Select Yes to finish and settle all tips for the selected employee. Repeat for each employee as needed.
    ​

🔄Correcting Tip Assignments

If a tip was assigned incorrectly and the ticket was paid using a credit card, you must void the original ticket and recreate it to update the tip allocation. This approach allows you to reassign the tip to the proper employee.

Click the arrow to learn how to correct tips

  1. From the Appointment Book, select the Appointment List.
    ​

  2. Use the search and filter options to locate and open the ticket.
    ​

  3. Make necessary changes to the tips based on transaction type:

    • Credit Card Payments:

      • If you only need to reassign the tip to a different employee, you do not need to void the card transaction.

        • Uncheck void credit card transactions and then recreate the ticket.

        • At checkout, select Custom Payment to avoid recharging the client.

      • If you need to adjust the tip amount, the credit card transaction must be voided and then recreated.

        • Check Void credit card transactions and then recreate the ticket.

        • At checkout, proceed to payment and charge client accordingly.

    • Non-Credit Card Payments:

      • Edit the ticket directly to adjust or split tips appropriately. If the tip amount changes there will be an outstanding balance on the ticket that will need to be charged.
        ​

  4. Confirm that the employee updates are reflected correctly in the system.

💳Managing Tips with Integrated Card Processing

Tips are automatically enabled when your credit card reader is set up. We at DaySmart have done our best to set these at business averages, but we encourage you to check the preset tip settings to ensure they work for your business.

⚙️Edit Tip Settings

Editing tips settings may take up to 5 minutes to reflect on the credit card reader

💻 Website

Click the arrow to learn how to edit Stripe tip settings on the Website

  1. Click on the three dots More.

  2. Select Settings from the menu that appears.

  3. Click Card Processing on the left-hand side menu, and then click Settings again.

  4. Scroll down to Device Options

  5. Choose your Tip preference

    1. Smart Tips: This allows you to set a pre-tip amount to determine if a suggested amount or percent should be displayed. If $10.00 is the pre-tip amount, any transactions run until $10.00 will show the suggested amounts set. If the transaction is over $10.00, it will show the calculated percent set.

    2. Suggested Percentages: When the tip screen appears, it will always calculate and display based on the three preset tip percentages

    3. Suggested Amounts: When the tip screen appears, it will always display the same three preset dollar amounts.

    4. No Prompt: The device will never ask your clients for a tip.

  6. Locate the Tip Options boxes and update the percentages if desired

  7. Choose the amount you'd like to base the tips on

    1. Service total: If products and Services are being checked out at the same time, the tip percentage will only calculate with the service total

    2. Entire ticket: All products and services will be included to calculate the tip

  8. Click update to save any changes.

Click the arrow to learn how to edit Clover tip settings on the Website

  1. Click on the three dots More.

  2. Select Settings from the menu that appears.

  3. Click Card Processing on the left-hand side menu, and then click Settings again.

  4. Scroll down to Device Options

  5. Prompt clients to enter a tip is already enabled; if not wanted, use the slider to disable

  6. Locate the Tip Options boxes and update the percentages if desired

  7. Choose the amount you'd like to base the tips on

    1. Service total: If products and Services are being checked out at the same time, the tip percentage will only calculate with the service total

    2. Entire ticket: All products and services will be included to calculate the tip

  8. Click update to save any changes.

📱Mobile App

Click the arrow to learn how to edit Stripe tip settings on the Mobile App

  1. Click on the three dots More.

  2. Select Settings from the menu that appears.

  3. Click Credit Card Processing Settings

  4. Choose Credit Card Device Tip Settings

  5. Choose your Tip preference

    1. Smart Tips: This allows you to set a pre-tip amount to determine if a suggested amount or percent should be displayed. If $10.00 is the pre-tip amount, any transactions run until $10.00 will show the suggested amounts set. If the transaction is over $10.00, it will show the calculated percent set.

    2. Suggested Percentages: When the tip screen appears, it will always calculate and display based on the three preset tip percentages

    3. Suggested Amounts: When the tip screen appears, it will always display the same three preset dollar amounts.

    4. No Prompt: The device will never ask your clients for a tip.

  6. Locate the Tip Options boxes and update if wanted

  7. Choose the amount you'd like to base the tips on

    1. Service total: If products and Services are being checked out at the same time, the tip percentage will only calculate with the service total

    2. Entire ticket: All products and services will be included to calculate the tip

  8. Click Save if you made any changes.

Click the arrow to learn how to edit Clover tip settings on the Mobile App

  1. Click on the three dots More.

  2. Select Settings from the menu that appears.

  3. Click Credit Card Processing Settings

  4. Choose Credit Card Device Tip Settings

  5. Prompt for tip is already enabled; if not wanted, use the slider to disable

  6. Locate the 3 Tip Options boxes and update if wanted

  7. Choose the amount you'd like to base the tips on

    1. Service total: If products and Services are being checked out at the same time, the tip percentage will only calculate with the service total

    2. Entire ticket: All products and services will be included to calculate the tip

  8. Click Save if you made any changes.

🔀 Split Tips

Splitting a tip on a card reader payment will come in handy if you have more than one employee providing services with a single ticket. You'll have the opportunity to split the tip however you prefer.

At this time, Split tips on a card reader is only supported on the Website version of DaySmart.

Click the arrow to learn more about splitting tips with card processing

  1. Create the payment just as you normally would, and ensure all the employees involved are marked for their service on this ticket.

  2. From the checkout page, click Proceed to Payments.

  3. Click the Credit button.

  4. Wait for the device to show Connected, then click Process Card.

  5. After the payment is collected, the Enter Tip Details screen will pop up

  6. In the tip amount boxes, you can edit how much goes to each employee

    1. The software will let you know how much was tipped, look for "Distribute Card Transaction Tip $xx.xx"

  7. Click Add

❓ FAQs

Find answers to common questions or additional details that may not be covered in the main instructions.

Click the arrow to view frequently asked questions

What’s the difference between Direct and Withheld tips?

Click the arrow to view the answer

Direct Tips are handed directly to the employee and don’t show on receipts. Withheld Tips are recorded in the system, appear on receipts, and are included in payroll until settled.

Can multiple employees be tipped on one ticket?

Click the arrow to view the answer

Yes, repeat the Add Tip process for each employee involved.

When should withheld tips be settled?

Click the arrow to view the answer

Withheld tips should be settled within the regular pay period, this can be done when running a payroll report within the software or by manually settling tips.

Can tips be added to Daycare or Boarding appointments?

Click the arrow to view the answer

No, tips cannot be added to daycare or boarding tickets.

Related Articles
Payroll FAQs
Payroll Management
Report Details (Cloud)
Edit a Closed Ticket
Gift Cards Overview
Did this answer your question?