Tips payout FAQs for business owners
GETTING STARTED
Should we be on Zenoti Payments (payment processor) to use the tips payout feature?
Yes, faster tips payout is available only to our customers using Zenoti Payments in the US region.
If we choose to enable the tips payout feature, is it mandatory to onboard all providers?
While most businesses prefer to have a single process for tips payout (for accounting and maintenance of uniformity), it's not mandatory for every employee to enroll for faster tips payout.
Can we start payouts from a specific date?
Yes. At the center level, you can set your preferred start date.
When will my employees get paid?
To decide when your employees get paid, choose either of the Payout programs - Payout on same day, or Payout within 2 business days.
Payout on the same day: Tips will be paid on the same day including bank holidays and you can set multiple payout times in a day. Businesses need to maintain funds in their own checking account to pay for the tips.
Payout within two business days: Tips earned will be paid on the second business day (For example, Monday's tips will be paid at 9 AM on Wednesday). Businesses do not need to maintain funds in their own checking account to pay for the tips.
Will employees be able to transfer the money to their own bank?
Employees can transfer funds from their Zenoti wallet to an external bank account without being charged any fee. Funds typically reflect in the beneficiary account in 2-3 business days.
How do I place a request for the provider cards?
Employers are not required to manage card-related aspects of this program. Providers can use the MyZen app to sign up for this feature and order cards. Once they complete the process, providers are issued an FDIC-insured bank account and a physical, personalized Visa consumer debit card. You can refer to Employee FAQs for more details.
If my providers are working in two locations, do they need to request two different cards?
No, tips earned across multiple locations of one linked business are credited to the same Zenoti wallet. Providers can access tips earned and payout details by the center, using the MyZen app.
PAYROLL, ACCOUNTING, AND HR
How do I know how much I am supposed to pay versus what has been paid through Zenoti?
Tips paid or to be paid will be shown under the 'Tips payout through Zenoti' column in your existing Payroll summary report. More details of tip earnings and payouts can be accessed through Tips Payout details and Reconciliation reports.
Does Zenoti make any deductions before paying out the tips?
No, we do not deduct taxes or processing fees at the time of payout. The entire tip amount will be credited to the provider’s Zenoti wallet. Businesses should consider total tip earnings towards tax computation, as part of their regular payroll process.
What happens if I re-open an invoice and update details that affect the tip amount?
All the invoice adjustments or refunds are considered before every payout. If there is an additional tip earned, tips got split or tips need to be deducted, those amounts are considered and the final adjusted amount gets paid to the employee. If the net amount is negative, it gets adjusted in future positive payouts but will not be pulled back from employees' bank accounts.
What happens if there is insufficient balance in the account?
When there is insufficient balance in your configured bank account, we receive an Automatic Clearing House (ACH) reversal within 2-3 days of ACH transaction initiation, and future payouts are paused for that specific center from that day.
To resume payouts, go to Tips payout reconciliation or funding report and click Retry against failed debit transactions. Once the reattempted debit transactions get settled with Zenoti (which could take up to 2-3 days), payouts will resume automatically. Please note that if you have enabled accumulation, the tips earned during this hold period get accumulated and will be paid out once the payouts resume at the center. If accumulation is not turned, it's the business's responsibility to pay tips during that hold period.
Are there any daily deposit limits for employee payouts?
There is no limit to the amount of earned tips that can be paid to stylists per day.
We have providers who are under 18. Can they avail of this feature?
Yes, employees under the age of 18 can enroll for faster tips payout but such employees should submit their guardian's details to get the Zenoti wallet and card. If they submit only their own details, the application for a bank account will be rejected.
Can providers place a request for another card for my family member?
We currently support one card against an active provider account. We have a spouse/family member card on the roadmap.
Some of my providers do not have a smartphone. How can they access MyZen?
Tips Payout is currently supported for employees with Zenoti wallet which can be created through the Zenoti mobile application.
Do I have to wait until all providers receive their cards to start payouts?
No, providers need to have active Zenoti wallets through the MyZen app. Once payouts start, provider tips will be paid out to their Zenoti wallet, irrespective of card status.
Providers who are awaiting card delivery can access funds on wallets by using Bank Transfer, to transfer funds out to an external account, if required.
EMPLOYER ONBOARDING
Can I add a single bank account for multiple centers?
You can add the same bank account or different bank account for different centers. Zenoti consolidates the required debit amounts in a day against a bank account and initiates a single debit transaction from a bank account. If you have your own checking account for the same-day payout, you might observe debit transactions from your linked bank accounts based on funding and threshold limits set during onboarding.
Can I update bank account details or payout configuration for a selected center?
Yes, you can update payout settings by navigating to the Tips dashboard. You can reach out to myzentipsonboarding@zenoti.com to get the bank account or funding logic details updated.