I am just joining Square Payroll and a little nervous about tip options. It seems like it either does it automatically for whoever is logged in, or I have to payout everyone evenly. The problem is people will be logged into one computer but payout will be different for my bartender and barback. How do I do this?
Hi @Backline. Currently you can not do this with Square. There is no way that I can tell you whether this is on the roadmap or even if it is in development. But Square does not currently handle tip-outs. Square tips are meant for relatively uncomplicated cases (like mine) where a tip pool is shared equally among all employees. Also Square tips is meant for the cases where each employee keeps their own tips, period, and there are not tipouts.
In the Square App Marketplace, there is a third-party app called TipHaus that integrates with Square. It handles the very situation that you describe. Yes, it costs money each month, but that is because tip-outs are complicated and TipHaus gives you every conceivable option for doing them that I’ve heard of. It’s crazy how many options there are. My belief is that Square hasn’t released this capability yet because they know that they are going to have to invest a lot of work and charge a lot of money for the capability. Besides, TipHaus already does it quite well.
Anyway, if you do tipouts and you don’t want to use a spreadsheet, you’ll need to use something like TipHaus. And since I’m pretty sure that you might think about switching to Clover or another processor, I’ll mention that tipouts are an added option for those, too. I have a few friends who use them and they tell me that the tipout functionality is crazy expensive for those, too, because they have to take into account laws in 50 different states, all of which are different.
Sorry to be the bearer of bad news.
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