Adjusting Tips and Employee Tip Reporting

[hrkemmling]

I get this is a highly demanded request, but just putting it out there if anyone else has found a streamlined solution. I went with Square payroll with the pipe dream that I wouldn't have to get into the employee tip reporting spreadsheet world that I hated with other payroll processors and it looks like we're back at square one?! 

So what I'm trying to do... please help!

We're a counter service establishment and the POS is under one login all day log. We've set to pool tips by transaction (ie split amongst employees clocked in at the time of sale). So far so good.

However, we tip out credit card tips from our cash drawer at the end of the day. So a.) I can't report that they are tipped out and have to make back office adjustments during payroll (I'm so excited to have a full time desk job now!) as well as never having an accurate cash drawer report anymore and b.) I can't see employee tip out distribution from the POS. Meaning I just extended my 10 hour work day to 12 so that I can stay for close and run a back office tip report for them at the end of the night. 

Please tell me someone out there has figured out a solution to this. With all the technology in the world there has to be a simple option right?  Thanks in advance!

[Donnie-M]

@hrkemmling I am thinking off the cuff on this one.  You could in theory make a position and then make a dummy employee account that is inelegiable for tips.  This would be the account you log your register in under all day.  This "person" would not clock in or out (could make them salary) so it wouldn't mess with payroll and the tips would be split with everyone else who worked that day.

I do it a little different.  We pool by hours worked since I credit the openers and closers with contributing to every sale that is made during the day and they are distributed based on total hours worked.  But I do not cash out credit card tips, we do that on the bi-weekly payroll and tax it accordingly with regular payroll as we pay a regular wage and do not do a tip credit.

You can bookmark: https://squareup.com/dashboard/shifts/labor-and-tips and go straight to the labor and tips and export the report for the day or just print the screen directly to do your tip out.

I would personally just change it to tips are paid out next day or weekly etc.  It will be a pain at first, but it isn't worth it imo.

[hrkemmling]

Thanks that generally makes sense. So frustrating that this seems like it would be an easy fix and yet still something Square hasn't addressed. But ya a next day standard for tip outs isn't the end of the world, just more work at my desk which means less work spent on what matters right? But I appreciate the suggestion. Thanks!

[Donnie-M]

@hrkemmling I think this would make an excellent ideate post for a reporting feature that you can set up an e-mail report like the labor & tips that is under the shift tab to automate the process.  I do understand it is tricky with if someone forgets to clock out or in as that will require the report to recalculate.  But I do know they are still working on shifts and features, so it may be on the roadmap, just not quite here yet.

[MayaP]

Hello @hrkemmling, I am happy to assist further with your payroll inquiry. In Payroll Settings, you can change your tip importing settings to Cash / “Don’t include in paycheck” so you can still import the tips, but they won’t be paid out along with their deposits. It records the tip amounts for tax purposes. Note: the cash tip amount cannot exceed the net pay. Our team did also confirm tip amounts per EE aren’t visible in POS. Feel free to reach out on our Ideate board with any suggestion on how we can improve this payroll process. Thank you, we appreciate your input.