Hi @waxmeb — welcome to the seller community! 👋🏻
Yes, with Square Payroll, you can add the amount of tips your employee receives through the Tips Paid column on the Run Payroll screen. While there is not a way to pay out tips via direct deposit, Payroll will calculate the amount to be taxed for each employee's tip amounts once they've been added. You'll want to refer to the Tips Paid column to ensure that tips already paid out to your employees are taxed appropriately.
For step-by-steps on adding bonuses, commissions, tips, have a look at the video tutorial below.
In addition, find more information on paying your employees in our Support Center.
Please keep in mind that we aren't able to offer tax advice — you may want to check in with a tax professional regarding how to report on tips. Hope this helps get you in the right direction and please let us know if anything else comes up! 🙂
️ Tom | he/him
Seller Community Manager | Square, Inc.
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