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Feature Request: Tip pooling for Square Payroll

Feature Request: Tip pooling for Square Payroll

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? 

63 Comments

We are a very busy cafe restaurant using the same order and delivery system for food. We often have up to 4 people working at a time. It is labor intensive but what they do is check the tip amount at each shift turnover and write it on a chart so that we can divide the tips evenly every week. The manager works out the total, compares to square's weekly total and then I add it into their pay checks. We could not think of how else to do it. Staff are so focused on tips, they do not seem to mind the labor involved and they know it is the only fair way to get the tips they were actually working for. (morning shifts more lucrative than afternoon, so they did not want to share evenly out.)

Super Seller Alumni

we too have a fairly busy counter service operation.  tips (cash & credit) are pooled over the day then split based on hours worked.  i.e., if i have 8 employees on and one works 6 hours out of a 30-hour total day labor, she gets 6/30 = 20% of the tip pool.  i pay all tips in cash and pull the credit card tips from my cash deposit (overstating my credit sales by the credit tips and understating cash sales by the same amount).

 

i developed a database using ruby on rails to keep track of daily totals, deposits, paid outs, and does all the tip calculations based on hours credited to each employee.  essentially, each day (or the next morning) i enter the sales data reported from square along with the drawer amounts, cash tip amount, and daily labor.  the database spits out a report that shows me my intended cash deposit and tip outs to each employee.

Thank you!

I did a similar thing, however I pool over a two week period. I created a small spreadsheet calculator (in google spreadsheets) to add it all up based on my number of employees during payroll period, all cc tips made during payroll period, number of possible hours in payroll period and then ultimately their percentage based on what they worked. Takes only a couple of minutes to plug in the numbers...no real labor involved. 

Woud you be willing to share your google sheets calculator with us? My email is [personal information redacted].

 

Thank you.

Square

@HeyDabba - Best to keep private information hidden. Feel free to send @kandt a direct message! Thanks!

We operate a bbq food truck and catering business. I've just set up all our employees within square so they all have a passcode to log into the Square Register. That keeps track of the tips that are left on credit cards per employee. Although, the report has to be run via internet not the Register app.

Beta Member

Is there a way to add tips to square payroll?  

Beta Member

You can "claim cashed tips" using the TIPS PAID field within payroll and have the necessary withholdings paid on any  tips paid via payroll (if an employee requests this), but payroll is not set up to pay the actual tip amounts (for credit card tip pooling, etc.).  There's the Additonal Pay field which you can allocate "additional pay" w/withholdings, but using this for paying out tips may not be a good idea. Our accountant as advised against using "additional pay" to get around it.  We would like to tip pool the credit card tips and payout each pay period.

 

I put a call in to Square Payroll today to see if there's a way of dealing with this.

Beta Member

As of my last email, "credit card tips"  is not an available feature within Square Payroll (it needs to be if they want to retain coffeeshop/cafe/restaurants).  We are using the Homebase plugin for our time card/clock and that has cash and credit card fields already implimented, so it should be pretty straight forward for Square to add this feature.  Most payroll has this feature standard.

 

We're reviewing our options.