What does pay tips directly mean with Square Payroll?

[VRios]

[The title of this thread has been edited from the original: Tips added to payroll when already paid]

Why are my employee's tips added to the payroll check when they have been paid out already? My understanding was if I enabled the tip importing feature and set it as "pay tips directly" and "cash" payout method , I would not have to pay tips on employee's paycheck.. What am I doing wrong? 

[isabelle]

Hey @VRios-

Thanks for posting in the Seller Community.

When Pay Tips Directly is enabled in your settings, it means that credit card tips are paid directly to the employee who collected the tip. Tips will then be imported into Paycheck Tips or Cash Tips (depending on your selection when setting up the feature). Any timecard hours will also be imported. After importing timecards and tips, you can make edits to hours and tips if needed.

It sounds like you should actually not be using Pay Tips Directly, and use the manual method because you're paying out prior to paying them for their hours. You can adjust your settings by signing into the Settings tab of your online Square Payroll dashboard. I hope this helps. Please let me know if you have any questions about this.