If you are using tip pooling, how are you handling cash tips?

[TheCreamist]

Cash tips - Read all the old locked out threads expressing concern for a lack of a great way to handle cash tips.  So I'm wondering in the great year of 2022 if there is a better way to handle this on Square.

The way I do it:  I have a "tip button" that I have employees ring in the cash tips when needed, (when tip jar is too full or at the end of the day) and then at payroll I have to manually calculate all cash tips to be paid through payroll.

Anyone have a better solution than this?

Advice appreciated! Thanks

[BofBArtStudio]

Having that tip button could skew your reporting for actual sales.  

I am not sure if there is a better way, but the way we do it is as follows:

• All credit card tips get pooled automatically through square payroll
• cash tips received by team members, they fill out a small form (approx 2in x 3in) stating their name, date, amount of cash tip and signature.  They put this in a slotted lock box for me to collect when I run payroll (through Square)
• On the payroll page, in the column marked Tips Already Paid, enter the total amount of cash tips reported by each employee.
• This then covers the proper reporting to the tax agencies, as well as keeps your accounting straight for revenues vs cash tips

Hope that helps

[TheCreamist]

Hey BofArtStudio

Thanks for the suggestion!

 Currently I found this solution on the forum for the "tip button":

There is a pretty effective end-run on this that I got from another thread. If I recall correctly it goes like this: 1) create an item for cash tips, 2) create an automatic 100% discount for the cash tip item (that keeps it out of net sales), 3) create a category roll-up with only "Cash Tips". 4) Tell servers to enter the cash tips at the end of each shift, 5) Before running payroll, look at Item Sales report, set time period to the payroll period,  and filter by Category Roll-up, and press display by server and you will have your complete cash tip record for the pay period.