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A restaurant, a salon, a bar. Tips arrive at the till all night and then have to become somebody's pay, split by whatever rule the house actually runs — hours, points, or straight down the middle.
An indivisible pool leaves odd pennies, and those pennies are money staff earned. They go somewhere named and consistent rather than disappearing into a rounding error, and the split refuses to complete if a single cent is unaccounted for.
A cash tip is already in somebody's hand — paying it again through payroll would pay it twice. A card tip is money the business is holding on their behalf and owes them. The system knows which is which and only pays out the half it is actually holding.
Whether a manager or an owner may take part in a pool varies by where you are and what you have agreed, and it is not a decision this software will make on your behalf. You set the rule; it enforces only what is structurally impossible — a share going to somebody not in the pool, or a pool paying out more than it holds.
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