Paying CC Tips to Restaurant Employees in 2020 and the furture.

[CTtaqueria]

TLDR; Let's use Square's own CashApp to Pay Employee Tips and more...

I am closing in on my first year of running a $3 Million dollar year restaurant operation in September. i also just recently graduated Georgia State University ion business Economics. My experience with square from a young age and my schooling and running this business have opened my eyes to some ways to improve the wonderful square ecosystem. Here are some of my ideas and wishes that would make my operations run more efficiently.

Let's talk Tipping. 

One of my biggest stressors at the end of our week, Sunday, is paying all 20 of my servers and bartenders, and hostess their tips with a check made on Quickbooks. 

I have a very advanced (in my eyes) google sheet that calculates how much my servers will pay out from their tips to the bartenders based off of alcohol sales. I have it set up like a progressive tax bracket; the more alcohol my servers can sell the LESS percentage they will tip out, an incentive to sell more. Anyways, so ill need to go to quickbooks and write out individually, because idk if they can do like a batch, each employees tip check. This is probably a two hour process for me know. And only because I designed it, my other managers have no idea what i am doing. So how cool if square made a place on the dashboard, CashApp employees. But the main part that I want to get rid of is printing the check.

I know there are companies like Instant and blah blah blah... Who wants another card?? We are in a new age and its all digital, Venmo and CashApp are leaders in peer-to-peer payments. Me as a manager, I want to create my restaurant CashApp account and pay my employees, which are synced from my team list. Then like on a scroll wheel which will take out a percentage of their tips (or not just saying). 

Bottom line

Square owns CashApp, we are in a new gen-x age were everyone has these platforms, we don't need a new card like instant, how great would it be to add another thing to square's ecosystem and allow a B-2-P money service. The accounting would be up to the owners responsibility. Which i figured out on quickbooks already. I'm just tired of printing and wasting so much paper. I can do this but I'll need CashApp to increase sending limits for businesses. I send over $9000 weekly. 

Rebuttals

I know someone from square is going to point me to square payroll and suggest I pay tips there and do a direct deposit option. Yeah been there done that. Our servers get paid tips weekly and other staff bi-weekly. All I'm suggesting is options and not only one route. 

Added Ideas

Integrate Weebly store with CashApp option, like venmo.

[pessosices]

Hey @CTtaqueria 

That's definitely a pretty cool idea! 
The future is definitely quicker instant payouts for employees across the board.

I love your outside the box & future looking mindset!

I know you said not to just say use Square Payroll, but there actually are a few reasons to do so (also I don't work for Square so I'm exempt from that 😁).

When you pay out Tips, they are Taxable and have to be declared. By using Square Payroll, it automatically does this - making it super easy to do things legally & by the book.

Sure there could be a way to do this in the future with Cash App, but it could get tricky without it being backed by Square Payroll.

With Square Payroll, you can just go down the list and batch add how much in Tips you want to pay out for each employee, rather than having to create a payment separately for each Employee, like what you're looking for.

And with Square Payroll, your team members can actually link their Cash App accounts and do direct deposit into that - so they don't have to use a Bank Account. It's a pretty sweet feature.

You also mentioned that you pay your serving staff weekly and other staff bi-weekly - you can totally do an off-cycle payment on the off-weeks for your Servers, either for their full payroll or just for their tips. It's super easy!

I definitely think there are ways to improve Payroll & Tipping out - especially working in a kind of algorithm that you use to calculate your tips - but in the meantime, Square Payroll definitely hits a lot of your points in the meantime, and does so by-the-book.

Looking forward to hearing more of your ideas!

Pesso

[Valentina]

Hi @CTtaqueria, fellow Georgia State University alumni here! 

Thanks for taking the time to flesh out your feedback and suggestions here - this is just what we love to see in the Seller Community. Also, a HUGE congratulations on the super successful first year in business ✨🎉

Here's to another 5 years of tacos and BIG gains!