Tips and gratuity for restaurants

[Ksprice2]

I have a restaurant with 2-3 waitresses. We recently added automatic gratuity so our waitresses could receive tips however it causes more time, effort AND PAPER to figure out which waitress earned the tips. Is there a better way to do this? Can Square develop something to make this easier based on the assigned waitress for the table?

[Donnie-M]

@Ksprice2 are you tracking who opens the checks?  I guess I should ask are you using the point of sale system or the restaurant system?

You may have to look at the team management, but I will see if I can check and see if it is required to track individual checks.  But for the most part, whoever uses their passcode to start the transaction and close it out can have the tip attributed to that person.

Are you using a service charge as your automatic gratuity?

I would caution you that the IRS does not consider an automatic gratuity a "tip" it is actually considered income and you should consult with a tax professional on this.  I know you can't use them to claim a tip credit and they are treated differently.