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Tip out team members with Square for Restaurants

Who is this article for?
This article is for restaurant owners or managers who use Square Restaurants POS and have the necessary permissions to edit shift reports and cash drawer reports in the Square Restaurants POS app, or use tip pooling features in the Square Dashboard. Learn more about team member permissions with Square for Restaurants. Tipping out methods rely on information from team members’ shift reports; the ability to run and view shift reports requires a Square for Restaurants Plus or Premium subscription.

Before you begin

Not every restaurant follows the same closing procedures, especially when it comes to tipping out team members. If your restaurant accepts optional tipping, below are a few of the common ways restaurants tip out at the end of a shift.

If you decide to tip team members directly or use tip pooling, make sure you’ve marked your team members’ profiles as tip eligible in your Square Dashboard. Learn more about setting up team members.

Tip out from a cash drawer

  1. First, have your team members run their shift reports to view payment card tips (i.e. Non-Cash Tips) in the Square Restaurants POS.

  2. In the Square Restaurants POS, tap Account > Cash Management > Pay In/Out.

  3. Label the payout (Team Member Name) Tips. Payouts will create a record of cash deducted from a drawer, separate from cash sales.

Tip team members directly

  1. In your Square Dashboard, go to Staff > Shifts > Settings > Tips.

  2. For the distribution method, select Tip directly.

  3. Choose whether you want to apply tip settings to Only this location or All locations, as well as an effective date. The effective date can be up to two weeks in the past.

  4. Click Save.

Tip pooling

With tip pooling, you can equally divide each credit card tip across all tip-eligible team members clocked in at the time of the transaction.

  1. In your Square Dashboard, go to Staff > Shifts > Settings > Tips.

  2. For distribution method, Pool tips per transaction or Pool tips by hours worked.

  3. Choose whether you want to apply tip pooling to Only this location or All locations, as well as an effective date. The effective date can be up to two weeks in the past.

  4. Click Save.

Next steps

Learn more about Team Management and Square for Restaurants from one of these Support Centre articles:

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