thread Re: Keeping track of tips with multiple staff in Archived Discussions (Read Only)

Is there a way to have square keep track or assign a tip to a person?

Keithppp — Wed, 30 Nov 2016 19:17:05 GMT

We are a dog grooming salon and use the open tickets feature for our groomers to create tickets. Is there a way in Square Register to keep track of the tips for the creator of the open ticket? Right now when a person checks out out our cashier writes down what the tip was and then cash them out at the end of the shift. Is there a way to have square keep track or assign a tip to a person?

Re: Keeping track of tips with multiple staff

Sean — Mon, 28 Nov 2016 18:58:55 GMT

@Keithppp - Happy to help out with this. As you mentioned, currently, open ticket sales are attributed to the employee that closes the ticket. Based on feedback from merchants like you, we understand most businesses prefer that the employee who either opens or is transferred the open ticket get credit for the sale and associated tips.

Effective 9:00 p.m. Pacific time on November 30, sales and associated tips will now be attributed to the employee that either creates the ticket or is transferred the ticket even if a manager or another employee closes it.

To credit a specific employee with a sale associated with an open ticket, all you need to do is transfer the open ticket to the employee using the transfer functionality now available within Square Register. For more information on transferring open tickets, visit our Support Center.

Hope this helps!

Re: Keeping track of tips with multiple staff

HRB — Sat, 07 Jan 2017 17:27:57 GMT

Sorry to muscle in on this post, which is not exactly associated with this question, but does this mean that the employee who "receives" a tip with a sale is taxed on the full amount of that tip? For our situation, I am trying to figure out how to run our Tip Allocation as we distribute tips evenly to all staff on shift, not just the Cashier on duty. I want to make sure that my Cashier is not the only one being taxed on the full amount of the tip. It's important to note we just signed up for Square Payroll also. Thanks.

Re: Keeping track of tips with multiple staff

Tom — Mon, 09 Jan 2017 23:41:25 GMT

Hi @HRB, thanks for bringing this up!

No, the employee who receives the tip (a.k.a created/was transferred the ticket) will not be taxed for it.

Square applies tips to the total sale amount, including the tax. While the app will not apply tax for tips, the transaction fee will be calculated based on the entire amount of the sale as well.

Hope this helps make things more clear for allocating tips! If you have any other questions, feel free to reply here — though keep in mind that Square cannot offer tax advice. 😉

Re: Keeping track of tips with multiple staff

HRB — Tue, 10 Jan 2017 21:24:41 GMT

Thanks for the response. Just to be clear, I am referring to payroll taxes, not sales tax. Does that change your answer? I am using square payroll as well as the POS. Thx.

Re: Keeping track of tips with multiple staff

Tom — Wed, 11 Jan 2017 19:34:28 GMT

Ah, got it — apologies for the confusion!

I see what you mean — tips collected in Square Register do not automatically sync with Square Payroll. With Payroll, you have complete control over the amount of tips that each of your employees receive.

In addition, there is not a way to pay out tips via direct deposit, but Payroll will calculate the amount to be taxed for each employee's tip amounts. You'll want to refer to the Tips Paid column to ensure that tips already paid out to your employees are taxed appropriately.

Hopefully that helps get you in the right direction, but please don't hesitate to reply with any other questions!

Re: Is there a way to have square keep track or assign a tip to a person?

LJSbow — Fri, 20 Jan 2017 19:38:08 GMT

We use DIP Jar! The staff loves it. after fees and payroll taxes they get about $4+ for every $5 tipped. It's a nice bump for hourly employees. 🙂 and they dont mind absorbing the fees because prior to this we didn't have a way to tip the attendants in the our float spa. -Laurie

Re: Is there a way to have square keep track or assign a tip to a person?

Sean — Fri, 20 Jan 2017 21:40:05 GMT

@LJSbow - Thanks for taking the time to share!