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How do you allocate credit card tips to the employees working during those tip hours?

Please explain how credit card tips can be distributed amongst the employees working.  Employee A worked from 6a - 10a alone and the tips at that time were $20.  At 10a, employee B came in, and at 2p employee A left.  From 10a - 2p there were $20 more in credit card tips.  So employee A receives $10 form that and employee B receives $10 from that.  Employee A, in total, received $30 in tips that shift.  How can we do this through Square and put it on their payroll?

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Admin

Best Answer

Thanks for bringing this up, @amandasue5, and for helping out, @BobbyHowe! 💯

 

I also wanted to surface that automatic tip reconciliation is available with Team Management. With this feature, you can assign employee passcodes so there’s no re-calculating involved with figuring out tips and commissions. Learn more about getting set up in our Support Center: Subscribe to Team Management.

 

Hope this helps. 🙂

️ Tom | he/him
Seller Community Manager | Square, Inc.
Find step-by-step help in our Support Center

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81 REPLIES 81

just timecards (payroll is additional)

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Another request for this feature!!

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Wondering if they are close to an update on this? An easy way to split tips between people clocked in (not just logged in) would be extremely helpful. 

Additionally we would request that the feature allow for tip splitting based on a percentage  (so cooks/bar backs could get a smaller tip cut than servers while clocked in simultaneously).

Thanks for an update. 

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Square Community Moderator

@thegreenbeanery Thanks for sharing your interest and the additional detail of splitting them on a percentage based amount. I don't have an update on this at the moment, but we'll continue to advocate for this as it gains more seller interest. I agree that it would be helpful for many sellers, so hopefully we can get something prioritized to help with this. 

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This is a major issue for our business. If we have more than one techinician working together on treating a family of four and the family leaves a $100 tip, I need to be able to split that between two or possibly three technicians evenly, since they all worked on that client's treatment. Right now, we have to figure it out manually on every single receipt (we have to print two receipts of every transaction, one that stays with their registration form and the second that goes into an envelope to manually divide up product sales commissions (some which are also shared) and shared tips.

 

Is there any way to show multiple employees on one purchase so it divides commissions and tips?

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Admin

Hello @AmySing, currently this is a feature request - there isn't a way to add multiple employees to a purchase in order to split the tip or commission. In the meantime you could view the tips collected in your reports, and then manually split the tips between employees by entering the tip/commission to each employee as a "Paycheck Tips" addition.

 

We'll post in this thread to let you know if this changes in future. 

️ Helen
Seller Community Manager

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I have a casheier at my resturant, and 4 watress.

Is there a simple or fast way for my casheier to sing in as a watress uesing the watresses employee code, and check a customer out under the watresses code?

So that the tip added by CC goes to that watress, and it will record to the sales for that watress?  So we can cash out and pay the watress the tips that were added by card at the end of the day? 

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Admin

Yes, if you like @bjnorton you could allow your cashier to use employee passcodes to ring up sales for your wait staff. There's more information about Employee Management features here and if you're ready to get started head to our Support Center.

️ Helen
Seller Community Manager

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This has to get fixed.  Restaurants that pool tips based on hours worked (like mine) need this setting. It's pretty basic and kind of ridiculous that it isn't already offered 

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Since the new tip splitting went into effect last week, credit card tips were not pooled and split across ALL eligible employees that were clocked in when the tip transaction occurred at our point of sale.

 

How do we correct that when importing tips during square payroll?

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A few questions regarding tipping:

 

Do the customers credit card tips get pooled together with the rest of the days sales that get deposited into bank account?

 

Is there any suggested way for employees to pull their credit card tips at the end of the day? Should they take them out of the extra cash in drawer after closing it out?

 

Thanks for any help.

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Square Champion

Yes, tips are just part of the deposit at the end of the day as they would be with another credit card system.  You would have to add the appropriate amount of cash to replace the credit card tips.

 

 

 

 

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When a credit card tip is paid out cash to the employee and the transaction is settled WITH the tip amount, how do you handle end of day reports? Is that tip amount needing to be entered in as "paid out" cash?

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I manage a Tip Pool spreadsheet that track tips by cash/credit per day against employee hours.

We add all the tips together, add all the hours together, tips/hours gives you your hourly tip rate then each employee gets  weekly tip check that pays out their credit card tips. Bi weekly hourly paychecks are issued with Tips reported for tax purposes.

 

This has worked for us for 2 years now until Square decided to meddle in our tip pool and now we have had an entire week of drama trying to explain to our employees that Square developers are idiots and not aware of hour to manage a cafe.

But yet Square takes their fees everyday...

 

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Square Community Moderator

Hey @PeaceLoveCoffee

 

We appreciate your feedback and will be happy to bubble this up to our product team. If there is anything else we can do to make this change better we will make sure to let you know. 

 

 

Sayra
Community Moderator, Square // Moderadora de la Comunidad, Square
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Same. Royally frustrated.  Ridiculous that Square can't do a basic function like split tips from a tip pool based on hours worked - something I was able to from an excel spreadsheet I built in less than an hour. And even worse that I appear to find inaccuracies in tips CONSTANTLY and have tried to reach support in regards to this MANY times and no one can give me a straight answer.  I'm so fed up

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As a fast food shop, our entire team splits and shares tips based on hours worked. It is all done manually.  We would like to add the tip function via Square, but can't figure out how to allocate the tips. Most of my employees on a shift are not logged in, but all are earning tips. How do people handle that?

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Hello @MJM1, I want to make sure I have a good grasp on what you're looking to do. 

 

You want to track all of the earned tips so you can then calculate how much was taken in within a given hour? Then split this amount evenly between all staff? 

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We are doing a tip pool. So we take the sum of tips in the pay period and divide it by the total of all employees' hours worked. This is the hourly tip number, and we then give each employee that times the number of hours they worked.

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We are having the same difficulty. We have 2 register people assigned per shift, but 15 or more other staff members helping customers with counter service. We would like to add the tip feature on Square, but cannot figure out a way to collect tips for all, then export to payroll. Any ideas?

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Square Community Moderator

Hi @Mgoetzeler

 

Unfortunately this isn't something available with Payroll as of right now. 

 

You'll have to do this manually by viewing your total tips in your reports, and then manually enter the tip amounts to each employee as a "Paycheck Tips" addition.

 

There isn't a way to automatically add this figure into Payroll, but we're tracking this very closely and hopefully we can prioritize a fix for this soon. 

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