Credit card fees on tips

[JMT]

How do I take out processing fees on non-cash tips for servers’ end of shift report?

[Joe]

Hi @JMT - thanks for taking the time to post this here on the Seller Community! Happy to have you.

This is a great question, and we have had similar questions like this from other Sellers as well. Currently, all tips are processed through our system with processing fees automatically taken out before depositing over to your bank. This means no extra work for you!

You can learn more details about this process here on our Support Center. Let me know if you have any lingering questions. 

[PizzaDiva]

Hi @JMT 

Hopefully @Joe  answered your question.  If not, are you inquiring about adjusting tips for your employees (tips minus fee)?  

[JMT]

Hi @PizzaDiva 

Yes, I was asking about adjusting tips for the servers.  Is there a setting that will take out the credit card fees on their End of Shift report?

Thank you!

[PizzaDiva]

@JMT  I am not sure about that since we're new to Square.  In our case, we let the employees keep the full amount.  However, a few years ago we moved away from paying CC tips from the drawer and they are now included on the paycheck.  I imagine we could easily add a column for this on the paycheck (which we process thru a major company, so no extra steps required on our end); that would be our approach if we were to make that deduction/adjustment. 

[LKABookkeeper]

@JMT I'm not sure where you're from but here in Ontario, employers are not allowed to deduct merchant processing fees from employee tips. Check with your local employment standards act to ensure your in-house policies are meeting the requirements of the labour restrictions in your area.