A Tip Left in Drawer is a tip left for a worker that the business plans to pay out at the end of the shift, day, week, pay period or other. Traditionally, these types of tips are paid in a lump sum to the worker collectively. When a tip is noted as a Tip Left in Drawer, that tip will be noted as such in a variety of reports and the Cash Counting.
A Tip Paid Out is a tip that is recorded in the software however it was distributed to the worker at the time of the transaction. Since you are paying the worker at time of receipt, it is noted separately from the Tips Left in Drawer but still calculated as a tip in a variety of reports.