LABOR REPORT WORTHLESS FOR SALARIES

[BurritoDay]

Labor reports are worthless for businesses with Salaried employees. What is the explanation? I've seen posts on here from ten years ago pointing this out. Why can't Square convert salaried positions to an hourly wage and add that to the timecard? And NO, I don't need or want my salaried employees to clock in and out. The whole point is they are ON SALARY, not hourly pay, they are here early or late or have special occasions to leave, and their timecard would be inaccurate. Can I at least get an explanation as to why this is impossible?

[SVLFever]

Hello @BurritoDay .

I am using Square payroll and I'm a salaried employee.  I do not clock in/out, but I get paid.

Are you setting the employees correctly, like this?

Square Salary.jpg

If you are, what error specifically are you experiencing?   It works just fine for me is why I'm asking.

[BurritoDay]

I'm thinking this is a bot, because you didn't read the post. No problem getting paid. The problem is salaried employee labor is not reflected in labor reporting, making it useless for businesses with salaried workers. 

[BurritoDay]

Sorry not trying to be rude if you are not a bot. There are just so many bots

[SVLFever]

I'm not a bot and I did read your post.   Salaried labor does show up in the reports, so I'm now at a loss to what you are referring to.  Based on your post, I thought you were saying that Square can't create a "salaried" employee, which it can, and my example shows that below.

What specific Square payroll report are you saying that salaried employees are not showing up in?

[BurritoDay]

Thanks for taking the time to reply. Salaried labor does not show up in "labor vs sales" reports for me, and I've read a few posts stating this same issue. I would really love to be wrong about this, because it would save me bunch of hassle. Are you saying that you are able to see a live "Labor vs. Sales" report that is accurate and includes the hourly wages that your salaried employees are getting paid for that day? Which would be the true "Labor Percentage of Net Sales".

This report for me does not include my salaried workers' labor converted to hourly pay. So I am having to enter the square "Labor Cost" into a spreadsheet that manually adds the daily labor of my salaried employees to the wages of the employees who are clocked in. Is there another report where you are able to see a live labor percentage that includes salaried employee wages vs sales? Or can the salaried employee be set up in a way that is will show up in this report that I'm missing? Thanks

[SVLFever]

Ah!!!!!   Now I get what you are saying.

The issue is that I think you are requesting something that isn't possible (without clocking in).   How would the labor hours report know if the salaried employee was working or not in order to do the calculation????  

According to the Managerbot, a salaried employees wage will show up in the labor report if they clock in/out.   The Managerbot also recommended this;

• Have salaried employees clock in/out like hourly staff, using a calculated equivalent hourly rate
• Manually track their cost outside Square and adjust your labor % target to account for the gap
• Use the exported CSV from the Labor vs. Sales report and add salaried cost as a line item

Hope this helps.

[BurritoDay]

By calculating it with simple math. That's what my original post says: Why can't Square convert salaried positions to an hourly wage and add that to the timecard? And NO, I don't need or want my salaried employees to clock in and out. The whole point is they are ON SALARY, not hourly pay, they are here early or late or have special occasions to leave, and their timecard would be inaccurate. Can I at least get an explanation as to why this is impossible?

It should be very easy for them to add this feature.

[SVLFever]

Yes, I read your original post, doing the math, as a human and not a bot, and immediately came to the conclusion that what you were asking isn't truly possible, which is why I was originally confused by your post.

There is an inherent problem in doing what you are asking, which is why I would think Square has not  implemented it.  Let's play it out the way you want to see it work;

• Let's take a $83,200/year salaried employee and convert that to hours - $40/hour.  That's simple, and yes Square could do that.
• Let's open the business.  and for aribitrary reasons, let's say it's open 12 hours/day, 7 days a week.   This is 84 hours.   Now the business is open 4368 hours year (84 hours x 52 weeks).
• Let's NOT clock in/out the employees, per your request.
• The only mathematical solution is to now say that the salaried employee is making $19.05/hour ($83200/4368), and we will now apply that to every labor hour that is worked in the labor hours report.
• The results of the report is that you will have salaried employee hours assigned to hours that they did not work, thus inflating the labor cost/hour.   In hours that they actually did work, the labor hours report is reflecting low, as their true cost of labor is NOT in the labor hours report.

What good is a labor hours report that is inaccurate?

The only viable solution that I see is to have the salaried employees clock in/out , or at least be scheduled in the scheduling software and take that schedule as is (this would ignore the thought of them taking a shift off or leaving early, etc...so it's not perfect either, but closer).  Otherwise the report will be useless the way you are asking.  I don't mean to sound harsh or rude, but I for the life of me can't figure out how you are expecting the report to be accurate in what you are asking for.  If I'm missing the math, please spell it out for me, as I'm not seeing it work.

[BurritoDay]

Sincerely thanks for taking the time to respond and think this through with me, but you’re conflating actual hours worked with allocation of a fixed salaried labor cost. I’m not asking Square to determine the employee’s physical whereabouts without a timecard. An $83,200 salary is $1,600 per week. If the employee is assigned a standard five-day, 40-hour workweek, Square can allocate $320 to each assigned day, or eight reporting hours at $40 per hour. The weekly labor cost would be exactly correct! The worker coming in late or early, working more or less hours doesn’t change their salary expense. Dividing the salary across every hour the business is open is neither necessary nor relevant. I’m asking for salaried-cost allocation in Labor vs. Sales, not trying to track attendance. It will give the manager the ability to look at the live Labor V Sales report and determine an actual labor cost based on sales that day. This is a very standard management tool that every restaurant I've ever worked in has implemented. There's a reason people are asking for it.