DailyPay Tips FAQ

What is a Tips Earnings file?

The Tips Earnings file provides employees’ reported (approved or unapproved) tips information, broken down by individual tips received or cumulative workday tips. DailyPay uses the Tips Earnings file to calculate an up-to-date Tips Available Balance for each employee included. We base an employee's Tips Available Balance off of the actual tips that an employee earns throughout a given pay period plus any shift earnings. Additionally, all tips data should be provided at the employee level, regardless of whether or not the tips were previously pooled.

DailyPay will not make 100% of the reported tipped earnings available to the employee to withdraw. We make a percentage of it available to account for normal payday deductions, like healthcare, taxes and other potential garnishments. We call this percentage the “advance rate,” and it is constantly adjusting based on an employee’s earnings history. 

As for Tips Earnings reporting, we recommend including a rolling 30-day window (today plus the most recent 29 days) of tipped information so that both current and past — but not yet paid — pay periods can be included. 

How do I set up DailyPay Tips? 

DailyPay Tips will be a new data exchange file that will need to be provided to the DailyPay Implementation Manager. If tips data is stored within the same system of record as your earnings, an additional column can be added to the gross earnings file to distinguish as tips. There are a few options for setting up DailyPay Tips.  Similar to the other data exchange files, tips earnings require a historical rolling 30-day window of earnings. The file can be set up via:

• FTP transmission of a .csv file 
• API Connection with a supported DailyPay B2B integration
• Loading a .csv file into the DailyPay Client Portal 

This connection and procedure will follow the recommendations provided by the implementation team.

If you are already collecting tip data in your system and would like to configure DailyPay Tips, please contact your DailyPay contact.

How is DailyPay Tips different from FlexTips?

FlexTips doesn’t show the split of tips vs. regular pay for employees. As such, all tips earnings are included in the available balance and are therefore bound by its rules, including the advance rate. With FlexTips, tips appear as shifts since they are not treated differently from regular pay. In summary, there is no unique front end experience with FlexTips.

With DailyPay Tips, earnings from tips are processed separately from gross earnings. As such, the DailyPay app is able to show tips separately from regular pay. Additionally, DailyPay Tips allows for hourly and tipped pay to have distinct advance rates. In summary, DailyPay Tips displays tips separately from regular pay. These two types of pay can also have distinct advance rates.

Who is eligible for DailyPay Tips?

All employees who are eligible for DailyPay and receive tips can access their tips within DailyPay if you have configured the DailyPay Tips integration. 

How much does DailyPay Tips cost?

There is no additional fee to set up a DailyPay integration for DailyPay. Standard transfer fees apply for employees enrolled in DailyPay. Because hourly and tipped earnings are combined in the Available Now balance, employees will not have to pay separate fees to transfer tipped earnings.

Can I set separate advance rates for tipped earnings and hourly earnings? 

Separate advance rates can be set for tipped and hourly earnings. DailyPay understands the inconsistency of tipped earnings due to season, weather, and location, there can be greater variability than hourly earnings. To account for this, DailyPay has separated the advance rate calculations for tipped and shift earnings to ensure the variability is accounted for and the workforce who depend on their daily tips are able to access a greater portion of their net earned tips. Additionally, because of the high variability in tipped earnings, there will still be a calculated exclusion to ensure risk is minimalized between DailyPay, the client, and the users. 

Can the tip access limit be different from the base pay access limit?

Tips will be a separate line item within the DailyPay product schema. This means that all exclusions, limits, and advance rates will be calculated based on the tipped earnings. This will account for any variability within the user's tipped earnings and ensure that a majority of the net earnings would be available to the user based upon the client preference.