Feature Request: How can employees record their cash tips when they clock out?

Feature Request: How can employees record their cash tips when they clock out?

The title of this post has been edited from the original: Square Payroll: How can employees record their cash tips when they clock out?

 

Yes!  Square needs to have this function as PART OF THEIR PAYROLL FUNCTION that we pay and subscribe to!  Right now I don't see anything that allows me to report cash tips for report and withholding purposes.  If Square is going to be charging us to "take care" of all the taxes, then this is one of those taxes that needs to be taken care of please!!

1 Verified Answer
Verified Answer

Re: How can employees declare cash tips on Square for Restaurants

Hello everyone, Helen here from the Community team. I'm very sorry that this hasn't been answered yet.

 

At this time there isn't a way for employees to manually enter cash tips from the Point of Sale app or Square for Restaurants app. Employees would record/track cash tips outside of your POS, and then in Square Payroll you can manually enter cash tips per employee when you run payroll. To track cash tips you could consider using the Homebase and Square integration.

 

I'm sorry that I don't have better news to share here, but I really appreciate your feedback. I've shared your posts with the Restaurants and Payroll teams too, and if it's possible for employees to enter their cash tips we'll reply here to notify you. 

39 Replies
Alumni

Welcome to Seller Community and thanks for your question, @Nuance!

 

Just so I understand your question correctly, you are using Tippy to send tips to your employees right away (rather than later as part of the employee's check), but they're still paid by customers via Square with the rest of their bill?

 

Adam
Square Community, Platform

So the $50 in tips that are given on the tippy app, and gets deposit into employees own bank account ....should I add that in their payroll under cash tips? 

Yes the tips are paid directly to the stylist, the business doesn’t touch that money. So should I add this money on their paycheck under cash tip?

 

thank you for your help

Alumni

Stepping in for Adam! @Nuance

 

Yes, add their tips under the Cash Tips field for accurate reporting!

 

Keep in Mind - The amounts you enter into this field will not be paid out to your employees but will be taxed. 

 

 

Justin
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.

Helen, I too would like to request this product change.  

I would like to be able to report cash tips and allow them to take the cash home at the end of each shift. How can I add tips to payroll for taxes to be charged but allow tips to be taken home at the end of their shift?

There is a pretty effective end-run on this that I got from another thread. If I recall correctly it goes like this: 1) create an item for cash tips, 2) create an automatic 100% discount for the cash tip item (that keeps it out of net sales), 3) create a category roll-up with only "Cash Tips". 4) Tell servers to enter the cash tips at the end of each shift, 5) Before running payroll, look at Item Sales report, set time period to the payroll period,  and filter by Category Roll-up, and press display by server and you will have your complete cash tip record for the pay period. There is a more detailed thread with a more detailed description, but this has worked well for us since we got rid of HomeBase

 

This method of cash tip reporting through sales does seem to be an effective way of reporting cash tips.  However, a word of caution... doing so will overstate your actual gross sales as tips are not an actual product or service that is being sold. Further, some states and cities require companies to report gross and net sales and this may inadvertently raise a red flag for audit with a local revenue department with vast differences between the gross and net.

 

I would also use caution in intermixing an employee's cash tips with actual company sales figures. Technically, an employee's cash tips, once received, are solely owned by the employees. Intermixing such monies would be highly discouraged.

Yet another really simple request that should be built into the solution that has languished for more than 4 years now. Has any progress been made on this request? In order to automate running payroll, I need my employees to be able to manually claim their cash tips on their own, without my involvement, otherwise, payroll is still manual and not automated.

 

It should be relatively easy to update the app to add an additional section under "Tips" called something like "Cash tips reported" which allows the employee to manually add whatever figure they choose to for each shift. "Total tips earned" would still be for credit card tips and not editable but it's critical to automation to allow the employees to claim their own tips so the employer doesn't have to enter it manually before an "automated" payroll run.

 

Is there an ETA on when this will be available?