thread Re: Employee tip payout in Archived Discussions (Read Only)

My new hire is getting paid commission and gratuities. How do I add tips to payroll?

waxmeb — Mon, 16 Jan 2017 01:22:25 GMT

I'm a salon owner who's recently hire a new employee. My employee will get paid hourly or comission, which ever is higher. I'm using the payroll app. My question is, am I supposed to report cash and credit card tips? if so, is there a step in the app where I can put it down? thanks

Re: My new hire is getting paid comission and gratuities. How do I add tips to payroll?

Tom — Thu, 26 Jan 2017 01:18:54 GMT

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! 🙂

Re: My new hire is getting paid comission and gratuities. How do I add tips to payroll?

antiguamke — Tue, 14 Mar 2017 01:53:04 GMT

Hi, for some reason the Tips Paid is NOT showing as an option for me. How can I add it? I have 5 servers with paid tips... Please help!!!

Re: My new hire is getting paid comission and gratuities. How do I add tips to payroll?

Sean — Wed, 15 Mar 2017 20:52:02 GMT

Hi @antiguamke. Sorry to hear about the trouble! Have you tried resetting or switching browsers? Google Chrome is my go-to browser for our site. If so, please reach out directly so we can have a closer look.

Re: My new hire is getting paid comission and gratuities. How do I add tips to payroll?

andreas — Wed, 19 Apr 2017 06:03:09 GMT

Hi, I have a question beyond what is in the video. I'll be hiring our first employee May 1st so i'm looking to see how Square and Xero handle commission. I'd like something automated that scales for more employees.

I am curious how people calculate the commission. For example if the employee gets 50% commission on all services provided, where in Square payroll do we point it to services provided by that employee for the pay period? Or do I need to run a report per employee per week to list all the services they provided and then manually enter each as the video describes? How would I build a report to show itemized sales of services not including tips/tax per pay period per employee?

Has anyone linked square to Xero and done payroll with Xero instead? It looks like they can handle automating the process but I would love to hear what someone thinks.

Re: My new hire is getting paid comission and gratuities. How do I add tips to payroll?

Tom — Sat, 22 Apr 2017 23:35:42 GMT

Thanks for surfacing, @andreas, and congratulations on hiring your first employee!

I'll touch base with our Payroll Team and see if there are any best practices for this. You may also need to touch base with Xero directly for more insight: Xero Support.

Appreciate your patience!

Re: My new hire is getting paid comission and gratuities. How do I add tips to payroll?

reclaimergold — Sun, 03 Sep 2017 19:41:06 GMT

Are we able to get an answer on this? I am going through a similar situation at this time and this information would be very helpful

Re: My new hire is getting paid comission and gratuities. How do I add tips to payroll?

Helen — Fri, 12 Jan 2018 22:13:13 GMT

Hello @reclaimergold! At this time there isn't a way to automatically pull in your employees' commission into Square Payroll. I see how that would save a lot of time so I'll share your feedback with the Payroll Team!

In the meantime, if you're using Square to track your employee's sales you can view and download a report from your Square Dashboard. Please let me know if you have additional questions about this!

Re: My new hire is getting paid comission and gratuities. How do I add tips to payroll?

swags — Thu, 04 Jan 2018 01:16:37 GMT

I don't see the "tips paid" column on my payroll screen. I'm using chrome and have a 2015 Macbook pro.

thanks

Re: My new hire is getting paid comission and gratuities. How do I add tips to payroll?

Tom — Sun, 07 Jan 2018 01:20:59 GMT

Hi @swags, thanks for flagging this an sorry for the confusion. I can't help out with account-specifics here but these troubleshooting tips usually resolve any online Square Dashboard issues right away: Square Dashboard Troubleshooting. If that doesn't get you where you need to be, I'd suggest checking in with our Payroll Team directly—they'll be able to get to the bottom of this ASAP.

Employee tip payout

Cristalizer — Wed, 10 Jan 2018 16:15:00 GMT

How do I tip out employees at the end of their shift. Does it show up on the check stub and do I need to enter a payout or will it be deducted automatically for credit card tips.

Re: Employee tip payout

Helen — Fri, 12 Jan 2018 22:16:19 GMT

This reply was created from merging an existing thread: “Employee tip payout”

Hello @Cristalizer! I went ahead and moved your post here so you can see Tom's Best Answer and the video showing how to add tips to Payroll. Let me know if you have any other questions. Happy to help!

Re: My new hire is getting paid comission and gratuities. How do I add tips to payroll?

WiltonPizzeria — Sat, 13 Jan 2018 13:49:31 GMT

I don't have a "tips paid" column either.

Re: Employee tip payout

Twistedhornmead — Tue, 30 Jan 2018 21:43:14 GMT

@Cristalizer I just did this myself. It doesn't say "Tips Paid" anymore (Square, please update your tutorial!). There is a "+" sign at the end of your payroll columns in order to add other columns. There is a "Cash Tips" column now that you use to report cash tips so that the appropriate amount of tax is withheld. We keep a log and create a receipt every night that records this amount and it is given to the employee and we retain a copy. Hope this helps!

Re: Employee tip payout

innaskitchen — Mon, 16 Apr 2018 12:32:34 GMT

I don't see credit card tips addressed here. We are a cafe and ideally employees get their credit card tips based on hours worked. Do they need to be cashed out at end of each shift then recorded at end of payroll? That would be burdensome to do each shift change.

Haw to add tips to payroll

Falafeltaco — Mon, 30 Apr 2018 13:15:57 GMT

How do I add tips to payroll

Re: Haw to add tips to payroll

katieand — Mon, 30 Apr 2018 17:27:19 GMT

Hi @Falafeltaco - I merged your post here so you should check out Tom's best answer on the 1st page!

Re: Haw to add tips to payroll

obrien247 — Tue, 12 Mar 2019 05:10:02 GMT

Surely you guys are aware that the video is outdated and looks nothing like what we are viewing. Please either post an updated video or provide an option for manually adding tips to employees timecard. I honestly don't even understand why something that should be very simple is sooooooooooooooo difficult. Get it together square...

How do I add tips to Payroll?

Caracasempanada — Thu, 25 Apr 2019 21:46:22 GMT

[This post was merged from its original thread titled: How do I add tips to Payroll?]

How di i add tips to payroll?

Luis

Re: Employee tip payout

sacredgroundsm — Mon, 22 Apr 2019 14:59:17 GMT

Have you received a response? I need to process credit card tips, and would like them to be included into the payroll run....