The way Square handles salaried team members is flawed and needs to be fixed ASAP!

[RiceandRoux]

We only have one salaried team member per location.  When you set that person’s salary, it converts it to an hourly rate based off of the expected hours per week.  That part is not, necessarily, an issue.  The problem is when that person works over their expected hours in a week. If a person has a salary of $750/week and expected/required to work 40 hours, that breaks down to an hourly rate of $18.75/hr.  If that person works over 40 hours, the timecard report and the labor vs sales report, continue to add $18.75/hr worth of labor $’s to the reports (even though they aren’t making any more than their set weekly salary).  This causes the labor report to show a higher labor % than it actually is. 

In a restaurant, we live, die, schedule, and cut hours based off of our hourly labor %.  Because Square doesn’t cap the labor $ for that team member at their set salary, it incorrectly inflates the labor %.  If we pay bonuses off of hitting a certain labor %, this causes issues.  These extra labor $’s each week on the labor vs sales report (that aren’t actually being paid) add up and become a big issue when we try and run a report for a month, quarter, or year.  

There are a couple of changes that would easily fix this problem:

1. Split the weekly salary evenly between the number of days the manager works in a week.  So, given the $750/week example, that person accounts for $150/day of labor if they work 5 days a week.

2.  Split the labor evenly between all 7 days.  I don’t prefer this way but it’s better than the current way.  

3.  Give the General Manager/salaried team member an option to enter how much of their salary they want to be paid out of the current day (until they hit their weekly salary).  That way, if it’s a busier day with more sales, the manager can afford to pay themselves more of their weekly salary and not blow labor for the day.  I understand this would take more of an overhaul but would prefer this to the other options.  

Note:  It has always worked this way on Square and has always been flawed.  I’ve emailed and spoken to customer service and they sent me here to explain the issue.  I’m open to any fixes that I’m not aware of.  

I hope this issue gets fixed.  Thanks!

[LLCafe]

Hi @RiceandRoux,

This is a good point, since this is a feature request you'll actually want to post it here so the Square team can review it: https://www.sellercommunity.com/t5/Feature-Requests/ct-p/Beta-Feature-Requests

One workaround, although it isn't ideal is you can add the team member's schedule based on 40 hours or whatever you based their salary on and then add their shift based on the scheduled hours and don't have them clock in / out to get the report to show correctly. Square payroll will still pay the salary amount but your reporting would be correct.