How to Import Tip Data from Your POS System for OBBBA Compliance
Your POS system already tracks tips. The problem is it doesn't classify them the way OBBBA requires. Here's how to bridge that gap.
What Your POS Gives You
Most POS systems export tip data with fields like:
- Employee name or ID
- Date or pay period
- Credit card tips
- Cash tips (sometimes, if tracked)
- Service charges or auto-gratuity
What OBBBA Requires
You need to separate the data into:
- Qualified tips (voluntary cash + CC tips) → W-2 Code TP
- Non-qualified tips (mandatory service charges) → regular wages
- Overtime premium (from your payroll, not POS) → W-2 Code TT
Import Steps
- Export a CSV from your POS (Toast: Reports → Labor → Tip Detail, Square: Reports → Tips, Clover: Reporting → Tips)
- Upload to TipTrack via the CSV Import tool
- Map columns — tell TipTrack which column is "employee name," which is "CC tips," etc.
- Review and confirm — TipTrack matches employees and flags any issues
- Data flows into pay periods — qualified vs. non-qualified classification happens automatically
POS-Specific Tips
Toast
Export the "Payroll Detail" report which separates tips from service charges. The "Tip" column is qualified; the "Service Charge" column is not.
Square
Use the "Employee Tips" report. Square doesn't natively separate mandatory service charges, so you may need to manually identify any auto-grat amounts.
Clover
The "Tips by Employee" report includes both tips and service charges. Look for the "Order Type" or "Tip Type" field to distinguish them.
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