Tips Manager and Online Ordering

Last updated: Dec 2, 2025, 6:00 PM

Set up a generic online ordering employee and a set of tip rules so online ordering tips can be distributed to employees.

First Steps

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In this Article:

 

Tips Manager and Online Ordering Basics

The federal government outlines tip pooling regulations in the Fair Labor Standards Act (FLSA). State and local governments may have their own regulations too. Prior to setting up tip pools and/or shares for your restaurant within Toast Web, you should consult an HR professional and consider federal, state, and local laws when defining your restaurant's tip policy and distribution rules.
 

With Toast Online Ordering, guests have the option to leave a tip when checking out. By setting up a generic online ordering server (a non-human employee), tips and gratuities collected through online ordering sales can be pooled with Toast Tips Manager to distribute back to clocked-in employees.
 

If you have previously configured online ordering in Toast, it's still important to review these steps for best practices in setting up the product.
 

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Create a Generic Online Ordering Job and Employee

 

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To successfully pool and/or share tips from online orders using Toast Tips Manager, follow this article all the way through the end of the Assign the Employee to Online Orders section. Then choose to either set up the default or custom online ordering pool.

 

Create a Generic Online Ordering Job

To create a generic online ordering job, follow these steps:

  1. In Toast Web, navigate to Employees > Employee management > Jobs.
  2. Select + Add Job > Create New Job.
  3. Enter the following information into the fields on the page:
    1. Job Title: Online Ordering
    2. Job Code: Leave blank
    3. Pay Basis: Hourly
    4. Default Pay: Leave blank
    5. Reporting: Do not include hours and pay under this job in restaurant labor summary reporting
    6. Tipped?: Yes. This employee must enter cash tips at closing. 
    7. Cashier: Yes
    8. Driver: No
    9. Default User Permissions: Check off the following permissions in addition to any others you would like to include: 
      1. 1.2 Quick Order Mode
      2. 1.6 Apply Cash Payments
      3. 1.12 Shift Review Sales Data
      4. 3.12 Shift Review
  4. Save this new job.

 

Now that you have created your generic online ordering job let's create a generic employee for it. If you already have a generic online ordering employee, make sure it has the same online ordering job you just created before you continue.
 

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Create a Generic Online Ordering Employee

To create a generic online ordering employee, follow these steps:

  1. In Toast Web, navigate to Employees > Employees management > Employees.
  2. Select + Add New Employee.
  3. Fill out the following fields:
    1. First name: Online
    2. Last name: Ordering
    3. POS access code: Assign one that isn't being used by another employee
    4. Jobs and pay: Select the Online Ordering job title you just created. You can leave Pay blank.
  4. Select + Add new job. You do not need to save and publish when you create an employee.

 

Now that you have a generic employee assigned to a generic job, it's time to add them to your online ordering settings.
 

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Assign the Employee to Online Orders

Once you create both a job and an employee specific to online ordering, then we need to assign the employee to all online orders.

  1. In Toast Web, navigate to Takeout & delivery > Availability > Online Ordering.
  2. Scroll down to Server Selection and select the Online Ordering employee you just created. 

    Online Order Server selection
  3. Save your changes. They will be automatically published.

 

Our final step to setting up online ordering tip pooling will be to create the rule that distributes these tips.

 

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Online Ordering Pool Setup

Once you've set up your generic online ordering employee, job, and assignment, the last step is to create an online ordering pool. Navigate to Employees > Payroll management > Tip pooling policy. You have two options at this point:
 

  • If you use in-house delivery drivers, self-contracted delivery drivers, or third-party online ordering/delivery (aside from Grubhub, UberEats, and DoorDash which are automatically excluded), use a custom setup.
  • If you'd like to split up online ordering tips and gratuities based on dining type (takeout and delivery), use a custom setup.
  • If you would like all tip and gratuity sources to be distributed as one, use the default setup.


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Default Method

Default pools are a way to utilize your online ordering system to capture all tips collected through the generic employee.
  1. To set up the default pool, select + Create online order pool at the top.

    Create online order pool - default method
  2. After selecting this button, a pop-up explains that this method will separate the default job of Online Ordering and Salaried into separate jobs: Salaried and Online Ordering.
    1. If you have not set up any policies on this page yet, simply select Confirm.
    2. This message is only relevant if you've already set up other tip pools first and you're setting up default online ordering second. If you're following the steps from Get Started With Toast Tips Manager, this message lets you know Toast is pulling any instances on online ordering contributions away from any other rules you created. This is part of the default method's function.

      Add Online Ordering Rule pop up
  3. The contributor's job is locked to Online Ordering so that all tips and gratuities collected from online order will be distributed to whichever recipient you choose.
  4. Continue to set up the rest of the card. Plan Your Tip Pooling Policy can assist you with the remaining options. Once you're finished, select Save.

    Default online ordering pool example

  5. If you'd like multiple default online ordering pools, select + Add online ordering pool under the first defaulted pool. 
  6. If you decide to start over or use a custom pool instead, select Remove pool from the bottom of the card. The pop-up will indicate that the reverse of step 2 is being done.
 

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Custom Method

If you'd like to avoid a default contributor or you have special considerations, such as tips by dining type, create a custom online ordering pool.
  1. Ignore/bypass the default pool. Do not select + Create online ordering pool.
  2. Create a new pool in the Custom pools section by selecting + Add pool. We suggest naming it Custom Online Ordering Tip Pool.
  3. Select the Online Ordering and Salaried job as the contributor. To set up the rest of the card's options, check out the Set Up a Tip Policy section of Get Started With Toast Tips Manager.
  4. Once the card is finished, you may wish to use the Move up and Move down buttons to place this card appropriately. We recommend putting this card at the top of your policy, so all online ordering tips are considered in subsequent rules. See the Order of Operations section of Get Started With Toast Tips Manager for more details on the order of your cards.
  5. Once you're finished, select Save.

    Custom online ordering tip pool example


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Service Charges for Online Ordering and Delivery

Note: Service charges cannot be applied to online orders exclusively. Any service charge created can be applied to applicable online and POS-entered orders. Takeout service charges are also be applied to curbside pickup orders.
 

To create service charges for online ordering and delivery, follow these steps:
 
  1. Log in to Toast Web and navigate to Payments > Checks & receipts setup > Service charges.
  2. Select + Add to create a new service charge.
  3. Configure these options on your screen:
    1. Name: Name of the service charge. Online ordering guests do not see the names of the service charges you create, but the individual charges will be separated out in Toast reporting.
    2. Charge Type: Select Fixed Percent or Fixed Amount. Open Amount cannot be used if the service charge is for takeout or delivery.
    3. Charge Percent/Amount: How much will be charged. Its configuration depends on the Charge Type.
    4. Apply After Amount Threshold: After any order reaches this dollar amount, this service charge will be automatically added to the check. Pro tip: Setting this to $0.01 will automatically apply this service charge to any order.
    5. Assign to check owner (Gratuity?):
      1. If you select Yes, this service charge will be configured as gratuity and will be paid out to the check owner (mandatory gratuity). When a service charge is assigned to the check owner like this, the digital receipt tip prompt will always show 3%, 5%, and 7% as the tip options.
      2. If you select No, this service charge will be included in net sales for the business (employer-kept service charge). This will lower the suggested tip on physical and digital receipts by the percentage of the service charge.
      3. Select Yes here to allow this charge to be included in Toast Tips Manager.
    6. Taxed?: Selecting Yes here will include the service charge in the taxable amount of the check. Selecting No will keep the service charge from having tax applied. Note: If your tip settings in UI options are configured to calculate tip after tax, this will also apply to the tax configuration for non-gratuity percentage service charges. Please consult your tax advisor for guidance on your applicable tax obligations. Compliance with applicable tax laws is your responsibility.
    7. Calculated on pre-discount or post-discount total?: If you selected Yes for Taxed?, then this further customizes when the service charge should be taxed. If you selected No for Taxed?, you can ignore this setting.
    8. Delivery?: Selecting Yes here will automatically assign this service charge to any checks with a Delivery dining option. This service charge will show up on receipts as "Delivery Fee" on guest receipts and in reporting, regardless of the name its given. Selecting No will not automatically apply this service charge.
      1. If multiple service charges have the Delivery? option set to Yes, they will be combined in to a single "Delivery Fee" on receipts and reports.
      2. Because of the "Delivery Fee" renaming structure, we do not recommend configuring a service charge with both Delivery? and Takeout? set to Yes. Doing this will cause these service charges on takeout checks to be categorized as "Delivery Fee".
      3. Instead, create separate service charges for Delivery and Takeout orders.
    9. Takeout?: Selecting Yes here will automatically assign this service charge to any checks with a Takeout dining option, including curbside pickup orders. Selecting No will not automatically apply this service charge.
      1. Guests will see this on a digital receipt in a combined line called Taxes & Fees.
    10. Dine-in?: Select No.
  4. Save and publish your work.
  5. A service area does not need to be created for online ordering service charges since the dining option you selected already auto-applies the service charge.

 

A takeout service charge will appear to guests at checkout within the Taxes & Fees line item.

 
Takeout service charge
 

If the guest selects the ? button next to Taxes & Fees in the image above, they will see a screen similar to this. If an online ordering service charge was assigned to the owner of a check, it will appear in the Gratuities tile. If it's assigned to the restaurant, it will appear in the Service Fee tile.
 

Taxes & Fees info
 

A delivery service charge will appear to guests at checkout as Delivery Cost, even if you named this service charge differently.
 

Delivery service charge
 

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Third-Party Delivery Services

UberEats, Grubhub, and DoorDash delivery services cannot be built into Toast Tips Manager because third-party delivery service tips are paid to the drivers of those companies and not Toast restaurants. However, this is only for delivery orders placed through these services. Tips on takeout orders will be paid out to your restaurant and will be a part of your online ordering policy. Tips on orders placed through other third-party online ordering services (Chowly, ChowNow, etc.) can also be a part of your online ordering policy.
 

With this in mind, build your online ordering rules as you would any other Tip Manager rules. If an online ordering policy is not set up, takeout tips from UberEats, Grubhub, and DoorDash along with all tips from other third-party online ordering services will not be distributed to your staff.


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This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for advice.