---
title: "Legacy Tip Makeup Overview"
slug: "tip-makeup"
description: "Legacy tip makeup rules calculate the gap between minimum wage and tipped employee earnings per workweek. Covers tip designation and recalculation."
updated: 2025-08-26T16:59:56Z
published: 2025-08-26T16:59:56Z
canonical: "docs.restaurant365.com/tip-makeup"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.restaurant365.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Legacy Tip Makeup Overview

Tip makeup rules calculate the difference between the minimum wage set on the rule and the employee’s total pay from hours **worked in tipped jobs** plus **tip earnings** at a single legal entity for that workweek. If a tip makeup earning is owed, this earning is placed on the last day of the week.

Any tip makeup earnings will be included in labor dollar and labor percentage amounts for the Labor Trends, OT Performance, and Schedule vs Actual Reports. Tip makeup earnings can be viewed on the Daily Sales Summary when [reviewing labor](/doc/docs/labor-review).

> Tip makeup earnings for a workweek are calculated each time punches are imported from the POS, each time punch edits are made, each time tips are imported, and each time tip automation distributions are approved.

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/f073d035-2323-4563-a8c0-640a79b4a5b6.png?sv=2026-02-06&spr=https&st=2026-11-10T23%3A13%3A41Z&se=2026-11-11T00%3A13%3A41Z&sr=c&sp=r&sig=7Uu9psVBeneD%2BNyWFt4w%2FdDgJVRDT5E6dIHNPIXKRtA%3D)

---

## Setup

### Tip Makeup Rules

[Tip makeup rules](/doc/docs/tip-makeup-rule) determine the minimum wage used in tip makeup calculations, as well as the locations that use the rule. [Tip makeup rules are created](/doc/docs/create-or-edit-a-tip-makeup-rule) by clicking +Create on the [Labor Rules page](/doc/docs/labor-rules-page), then selecting Tip Makeup.

All existing tip makeup rules can be viewed on the [Tip Makeup tab](/doc/docs/tip-makeup-page) of the Labor Rules page.

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-GO1HN98W.png?sv=2026-02-06&spr=https&st=2026-11-10T23%3A13%3A41Z&se=2026-11-11T00%3A13%3A41Z&sr=c&sp=r&sig=7Uu9psVBeneD%2BNyWFt4w%2FdDgJVRDT5E6dIHNPIXKRtA%3D)

### Tip Designation

Tipped jobs are determined by the tip designation of the job as found on the associated [job record](/doc/docs/job-records).

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/23f0372a-8b1f-46f4-9539-50cf30b0d137.png?sv=2026-02-06&spr=https&st=2026-11-10T23%3A13%3A41Z&se=2026-11-11T00%3A13%3A41Z&sr=c&sp=r&sig=7Uu9psVBeneD%2BNyWFt4w%2FdDgJVRDT5E6dIHNPIXKRtA%3D)

An organization or company configured in R365 that represents a distinct legal and tax-reporting unit. Legal entities contain one or more locations and define how financial and operational activity is grouped, reported, and filed.

Structured documents that provide insights and summaries of various operational metrics and financial data.

POS (Point of Sale)

A system used by businesses to process sales transactions and manage customer payments. Connected to R365 through a [POS integration](/doc/docs/pos-integration-overview).