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How do you allocate credit card tips to the employees working during those tip hours?

Please explain how credit card tips can be distributed amongst the employees working.  Employee A worked from 6a - 10a alone and the tips at that time were $20.  At 10a, employee B came in, and at 2p employee A left.  From 10a - 2p there were $20 more in credit card tips.  So employee A receives $10 form that and employee B receives $10 from that.  Employee A, in total, received $30 in tips that shift.  How can we do this through Square and put it on their payroll?

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Admin

Best Answer

Thanks for bringing this up, @amandasue5, and for helping out, @BobbyHowe! 💯

 

I also wanted to surface that automatic tip reconciliation is available with Team Management. With this feature, you can assign employee passcodes so there’s no re-calculating involved with figuring out tips and commissions. Learn more about getting set up in our Support Center: Subscribe to Team Management.

 

Hope this helps. 🙂

️ Tom | he/him
Seller Community Manager | Square, Inc.
Find step-by-step help in our Support Center

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Can you guys make tip pooling an option? All restaurants do this and it saves the people running payroll hours of work. Sooner the better.

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Alumni

I'll add this as a feature request @FKFrozenCustard. Thanks for sharing!

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Nearly 5 years later and still hasn't happened.........

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Have you found an easy way to split debit tips?

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@FKFrozenCustard have you found an easy way to split debit tips?

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Hi @MJM1@amandasue5 Pooling tips is a practical way to handle credit card tips. We do bi-weekly payroll and I copy the tip amount collected in Square for the 2 week period to a spreadsheet with a simple calc to divide the tips between our team based on the total hours worked by each individual. You can grab a copy of the spreadsheet (Excel and Numbers file at the link)  Tips Calculator

 

 

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Beta Member

That will work if the tips are acquired during the same time each day but when you have some workers that work day shift and get little tips and others that work night shift and get large tips (because they are busier) then the employees are not happy with that solution because the day shift is not working as hard but still gets an equal share of the tips.  There needs to be a way to calculate tips based on the hours they are acquired vs the hours that the employee works.  Right now it is a completely manual process.

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In the interim, feel free to check out https://tipmetric.com , a 3rd party solution that integrates with Square and provides extra flexibility to calculate tips based on the hours they are acquired vs the hours that the employee works.

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@Helen Hi there. I just opened my new hair salon and I am having this issue at the end of each week with calculating tips. Many of our clients leave tips for several employees (hair washer, stylists, manicurist) and by inputting simply a total tip amount is extremely unsustainable for us. Any update on when this feature would be added or other suggestions to solve this issue? Thank you!! 

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Admin

Hey @InscapeSalon! I've moved your post to this thread where other sellers have shared tips about how they distribute tips. Read the posts on page 1 and page 2 for more information! 

️ Helen
Seller Community Manager

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Any update to this? Been 6 mo since the last post. We have 2+ folks working our bar at any given time and they help everyone, so they really need a way to pool their tips and split at end of shifts.

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Hey @SaltFireBrewing, there haven't been any updates on this request. It looks like it hasn't been mentioned yet in this thread yet, but if you're using Square Payroll and timecards you can pool and split tips among emloyees. Those tips are split based on hours worked and are paid out by paycheck. 

️ Helen
Seller Community Manager

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This reply created from merging an existing thread: "Assigning Credit Tips" The author has been notified via email.

 

Can I manually assign the credit tips to an employee (after a shift) so they don't have to use their ID every time they want to make a sale??

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Has this been updated? Going back to the OP we would like to do the same and split based on who is clocked in. 

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Admin

Hey @ClueIQ, thanks for checking in on this request. I went to look for updates, and there isn't anything that we can share out right now. Hopefully the suggested workaround helps for the time being.

 

Keep in touch as we'll announce developments related to pooled tips as soon as they come come through.

️ Tom | he/him
Seller Community Manager | Square, Inc.
Find step-by-step help in our Support Center
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Has there been an update on this tip pool conversation. I am not seeing any mentions since Feb of this year? 

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Square Community Moderator

Hi @MichaelRDL!

 

No updates at this time but if this does becomes implemented- we'll be sure to update the thread!

 

Ashley C
Community Moderator, Square
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We just got square terminal which we are only using to process Credit card sales and it isworking fine and easy to use. However, every other Credit card processor I  have used, over many years in the service industry, has allowed staff be assigned a "Server Number" and then all the sales and tips are available in the report by server. WITHOUT HAVING TO PAY AND EXTRA $35 A MONTH. This is not some kind of new technology, it is standard with a CC terminal. It feels like a bit of a rip off to me. 

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Agreed. We should be able to see who made what tips, they have all the data just let us run a report to show it. 

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When will Square Payroll support the ability to split tips based on shift?  Our bartenders pool tips.  It's a lot of work when it comes time for payroll to manually split those tips up based on when someone is clocking in or out.  We use Square Timecards so adding this feature shouldn't be too difficult of a calculation.  I know it would save a lot of people a lot of time each time they run payroll if Square did this for us.

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@snowpacktaproom Sorry to say this is a feature request that's still on our list. If we come out with any new updates, we'll make sure to update this thread.

Bea_
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