Credit Card Tip Pooling

[SullysTap]

Square for Restaurants tip pooling used to pool & disperse credit card tips to those clocked in at the time the tab was cashed out. 

Now it is pooling tips based on who was clocked in when the tab started. 

Example: Tab was started at 4:06 pm & cashed out at 8:06 pm.

Alexis was the only one clocked in until 5:00 pm

Kirsten clocked in at 5:00 pm & out at 11:00 pm

Jessica clocked in at 5:30 pm & out at 11:00 pm

Tips should have been dispersed to all 3, but the tip pooling only dispersed to Alexis, who started the tab but left shortly after.

[Donnie-M]

@SullysTap I think this is interesting.  It would make sense when pooling tips by transaction that is would be when the transaction is actually cashed out.  If you are pooling tips I would strongly recommend pooling the tips by the 24 hour workday (this will split it fairly across all tip eligible workers based on the hours worked).  As long as your jurisdiction allows this, otherwise, I know most places will require a check be closed out before those shift changes.

There are arguments for both ways, who really started the sale?  Who really made the sale?  yada yada yada...but I am interested that this changed.

[Summer2024]

Hey there, @SullysTap! 

Try making sure you have followed all of these steps for tip pooling :

For distribution method, select Tip directly, Pool tips per transaction, or Pool tips by hours worked.

1. 1. Tip directly: Transaction tips are attributed to the team member who collected the tip.

   2. Pool tips per transaction: Transaction tips are split equally among all tip-eligible team members clocked in at the time of the transaction. This distribution method works best if you want to reward your team based on the tips earned during their specific shift.

   3. Pool tips by hours worked: Transaction tips from sales are split among tip-eligible team members based on their hours worked. You can specify whether to split tips based on a 24-hour workday or across a 7-day workweek. Splitting tips by workday works best if you want to reward team members who may not work their entire shift interacting with customers; splitting tips across a workweek better accounts for tip variability across a wider time frame.

2. Choose whether you want to apply tip pooling to Only this location or All locations, as well as an effective date. Note: The effective date can be up to two weeks in the past. 

3. Click Save.

You have the option to toggle on or off Distribute unattributed tips equally, which is only relevant if you’ve selected Pool tips per transaction as the tip distribution method. If you toggle on Distribute unattributed tips equally, tips received when no one is clocked in will be equally distributed among all tip-eligible team members who clocked in that workday.

Once you follow the steps above, credit card tips will either split equally among all tip-eligible team members clocked in at the time of the transaction, or split among all tip-eligible team members based on their hours worked within a 24-hour workday or across a 7-day workweek.

You can also check out this Support Article in case I missed anything. Let me know if this works.