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Import tips with Square Payroll

Who is this article for?
  • Only account owners can enable tip importing.
  • Full-service Square Payroll subscribers.
  • About tip importing

    Tip importing automates the process of calculating tips and importing them into payroll. Square Payroll supports importing credit card tips for W-2 employees. Tips can be pooled and split or paid directly to the employee that collected the tip.

    Once you enable tip importing, you can import tips automatically in your pay run.

    Square Payroll sellers can access tip tracking from the free version of Square Shifts as a part of their subscription.

    Tip importing does not include:

    • Deducting credit card processing fees from tips

    • Auto-gratuity with Square for Restaurants

    • Importing tips for salaried team members who do not use timecards

    • Contractor tip importing

    Before you begin

    With Square Shifts, you can also require your team members to declare cash tips when clocking out or switching jobs on the Square Team App or at your shared point of sale. When running payroll, you can import cash tips directly into your pay run.

    To use tip importing with Square Shifts, make sure you set your tip distribution method. Learn how to set up tip pooling.

    Make sure team members are set as tip eligible in their team member profile. Learn how to add and manage team members.

    Enable tip importing

    You can enable tip importing from your Square Dashboard.

    1. Sign in to your Square Dashboard and select Staff & Payroll > Payroll > Settings.

    2. Toggle on Enable Tip Importing.

    3. Select the Tip payout method.

    4. Confirm the distribution method you set up with Square Shifts.

    5. If applicable, toggle on Declare cash tips to require your team to record cash tips on the Team App or at your point of sale when clocking out or switching jobs.

    6. Select Save.

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