Using Retail App and adding a tip to cash sale

[Robertwf]

I have had a few customers give me cash for products sold and they gave me more than the amount and they said add it as a tip but I don’t have that option when entering it into the retail app when charging and selecting cash as the transaction. Is there a way to do this or do I have to go about it another way?

[TheRealChipA]

Hi @Robertwf.  A couple of questions so that I give you the correct AND legal answer.

1. Do you have tipped employees?  Or are all of your employees commission/hourly?
2. What do you do with this extra “tip” money?  Does your business keep it, do you distribute it to your employees whether or not they are tipped employees?

I think after you answer those two questions, I can give you another way.  To answer the first part of the question, you can not add tips to a cash sale.  Cash tips are handled a different way, through the clock-out and payroll side of Square.

Regards,

[Robertwf]

Actually, the tips go back into the business as I am the only employee for my company. Hope that helps. I think I finally figured it out but I’m open to any other suggestions or tips. Thank you

[TheRealChipA · Accepted solution]

I thought that might be the case!  Back during the lockdowns I spent a few weeks running my establishment myself until I had things in order to bring back a few employees.  Thankfully, being an outdoor ice cream shop, we were able to stay open more or less.  Anyway, as an owner, I obviously could not keep tips that were being thrown at me!  So, I just created an item in my POS called Donations and entered the cash tips there every day.  Then, I booked those in my accounting software as “Donation Income.”  That kept me perfectly legal on all fronts.  I even put up a sign to let people know where their kind donations were going.

That’s about the only work-around I can offer!

[Robertwf]

Thank you and that works out. I’m still getting use to all the functions of square as I was using QuickBooks in the past but I find it was easier to run one thing until I get a bit bigger then switch over when I can afford it. Thank you again!