How a tip pool by hours works
All the tips for the shift go into one pool. The pool is divided by the total hours worked to get a tip rate per hour, and each person gets that rate times their own hours. Someone who worked 8 hours gets twice what someone who worked 4 hours gets.
Example
$850 in tips and four people who worked 8, 6.5, 5 and 4 hours (23.5 hours total). The rate is $850 ÷ 23.5 = $36.17 per hour. The 8-hour shift takes $289.36 and the 4-hour shift takes $144.68.
Tip-out percentage
Some restaurants only pool part of the tips, for example servers tip out 20% to the support staff. Put that percent in "Percent of tips that go to the pool" and enter the hours of the support staff only.
Rules to keep in mind
Under the US Fair Labor Standards Act, managers and supervisors cannot keep employees' tips, and a pool that includes back-of-house staff has extra rules when the employer takes a tip credit. State laws vary, so check your state's labor department before setting up a policy.