Tip Calculations? Seems very inaccurate.

[havenssweetshop]

I don't understand how tips are calculated in square.  

Yesterday I had two employees clocked in at the same time sharing one device.  A customer made a $5 tip.  

I ran payroll today and each employee received $2.62 for the entire two week pay period.  I know for sure that other tips were received. 

A quick search showed the day prior one of those two employees clocked in (simultaneously while a new 3rd person was clocked in).  They collected a $2.44 tip.  

The 3rd person's entire pay check only showed a tip out of $.52

The second employee (at the least) should have the remainder of the $2.44 and her part of the $5 tip first noted.

[AshleyK]

HI! Thanks for reaching out! Credit card tips will be pooled across all locations, split based on hours worked in selected interval and paid out by paycheck. Is it possible that any of these employees worked less hours than the other?

[havenssweetshop · Accepted solution]

I spoke with several people at Square today.  When I finally spoke with someone in the Payroll division I received clarity.  (not quite the answer I wanted, but at least clarity).  

In the payroll setup there an an option to pay the Pool and Split Tips (which I had enabled).  However, my tip pool interval was set for pay period, not work day.  Therefore, if an employee worked on Monday and collected $10, she was splitting that with the entire team divided by number of hours worked in that pay period.

I just now realized I should have the "workday" set as the proper interval. However, this still doesn't perfectly solve my problem.  Example... if I have one employee work in the AM and earn a $20 tip... then second employee comes in for PM shift and earns zero, the system is still going to split up the tips amongst each team member clocked in that day.

I'm told there my be a new feature roll out coming soon.  I hope so.  This arrangement does not work for my business format. 

[AshleyK]

Ah! That makes sense. Thank you so much for sharing and I'm glad you were able to get things sorted out. 🙂

[Madkorzon]

What if someone works in an area where tips are not part of the job description.  Will he also get pooled into the tips?  Is there a way to opt out of tips based on job description?

[JJ_]

Hello there @Madkorzon 

Yes, you can remove a team member from tip pooling via their compensation setting within their profile in the Square Dashboard.