Feature Request: Tip pooling for Square Payroll

jwagener · ‎04-15-2016

The title of this post has been edited from the original: How to handle credit card tip distribution to employees in a small cafe?

We are a VERY small cafe, where people order up front and we bring the food out. If more than one employee is working in the front of the house, how do we distribute the credit card tips? The food must be run up under someone's name, but everyone will be working together to get the food out and tables cleaned. Its not fair to have all the tips under only 1 person's name (and thus taxed to one person). I'd like to pool the tips and then split evenly at the end of the shift. Does anyone else have any experience in this regard?

VCB · ‎12-15-2016

If you are not going to pool, then you'll need to use the custom sales report feature to figure out the tips for each employees' work period and divide accordingly, unless the employees are to receive the tips directly, in that case you can look at the register sales report for each individual employee and pay out the cc tips as allocated.

oregoncrepe · ‎12-29-2016

We also pool tips on a weekly basis. Small cfe, total 6 paid staff. At the end of the day wee use the CashDrawer report Description field to enter the totalc ash tips, the total credit tips and the total amount of sales. That gets emailed to me so when I am home I enter those in a daily sales spreadsheet that breaks out cash tips and credit tips.

Every Monday I distribute tips to the staff in cash, based on hours worked that week. I have a separate line in QB for recording credit card tips so they do not affect sales. The cash tips wash through petty cash. At the end of the month I credit my "Cafe Cash Sales" account with the amount of credit card tips I record. The spreadsheet is pretty easy, take the total in tips, and the hours for each person.

Employee A tips = (EmpA Hours / Total Hours) * Total Tips.

I absorb the Square charges for CC tips as I get use of the tips funds for the week, so that I feel is a fair trade.

perks1207 · ‎04-14-2017

This has always been a huge gripe of mine for years. Also takes a lot of work to go through multiple emplyees of what hours they worked and with whom. I would assume it be easy to switch whoever is assigned to that register to whoever was clocked in at that location. Save coffee shop owners and other businesses alike a ton of time. Should be able to reward your best and longest standing employees the best shifts without this much hassle. Yes I am agianst pooling for many reasons. Thank you and please fix soon.

Kpay · ‎05-12-2017

@perks1207 thanks for posting here and for adding your voice to this thread. We'll make sure to update here when there's a better solution to this - in the meantime, thank you for your patience!

TacosNotWraps · ‎09-12-2017

@BBQDude,

So if you have 2+ employees clocked-in at the same time, does Square divide the tips earned from cards evenly based on their hours worked?

And when you run payroll, are the tips allocated to each employee automatically and paid?

Thank you,

Helen · ‎09-12-2017

Hello @TacosNotWraps!

Square does not automatically pay out credit card tips at this time. We're still actively tracking this feature request and as soon as there are any updates we'll update this thread!

In the meantime, to see each employee's tips you can download the Employee Sales Report from your online Dashboard. Then, you can add the tips owed under Paycheck Tips in Square Payroll before paying your employees.

oregoncrepe · ‎09-12-2017

We don't use square's payroll system - it is not implemented in Oregon yet -- I currently use a program that runs on the ipad, but is also my shcedulling progam and interface with my 3rd party payroll system as well. We also handle tips a litttle differently, I pay cash and credit out as cash on a weekly basis and enter them all in our payroll system.

ryuemura · ‎11-27-2017

The coffee bar that I work at has 2 employees working per shift, all shifts are 6 hrs. We pool tips and distribute cash and credit card tips at the end of each shift using the "Pay out" button under "Current drawer". We pull all of the credit cards tips out from the register and account for that in the pay out. We're then left with how much the register should have in cash. We (the staff) close out the register every night when we close leaving $200 for the morning shift. The remaining cash is either dropped in the safe or the owner takes it with them to the bank right after. We write down the cash amounts from the register, along with how much each employee recieved in tips. This is recorded for payroll. Not hard to do, takes about 10 mins total.

Is there an easier way? I'm about to open my shop very soon and will be implementing the same concept unless I find an easier method.

Charlotte1107 · ‎12-02-2017

I am HR Manager in a group of restaurants and one thing you have to be mindful of when you do tip pooling is make sure that there is transparency in your tips distribution. Some restaurants use Excel but we are using a software called TipMetric.com to help us out.

VCB · ‎12-02-2017

One post, one referal for Tipmetric. Tipmetric spam?

One group owns the restaurants listed in "Trusted by".

Domain registered March 2017.

Interesting product though. Priced high for our buisness.