EZTime and Square: sales on one side, hours on the other

Square knows what you sold. EZTime knows who was working. Put them side by side and staffing decisions get easier.

In shortEZTime can connect with Square through the EZTime API (Premium plan) or a custom integration built by EZTime’s development team so that sales from the register can be read alongside the hours your team worked. The useful output is labor cost as a percent of sales and sales per labor hour, by day, by daypart and by location.

What each system owns

Square holds transactions: items, discounts, refunds, tips and the location where each sale happened. EZTime holds time: who clocked in, where, for how long, and under which job. Keep that split in mind and most setup questions answer themselves. Sales stay in Square. Hours stay in EZTime. The connection gives you a place to compare them.

The data points, direction and timing for your account are confirmed with the EZTime team during setup, so use this page to prepare your questions rather than as a technical specification.

Gross sales or net sales

Pick one definition before you build a report, and keep it. Gross sales include items before discounts and refunds. Net sales are after. A cafe that runs a lot of loyalty discounts will see labor cost as a percent of sales move by a couple of points depending on which number is the base. Write the definition at the top of your weekly report so nobody argues about it later.

A worked example: one cafe, one Saturday

A cafe in a downtown location has made-up numbers for a Saturday:

Saturday by daypart, made up
Daypart Net sales Labor hours Sales per labor hour
7 to 11 $1,480 20 $74.00
11 to 3 $2,310 24 $96.25
3 to 7 $690 18 $38.33

Late afternoon brings in $38 per labor hour against $96 at lunch. That points to moving two of the three afternoon shifts, not to cutting the whole team.

Tips and the pool

If your staff share tips, the record needs the day’s card tips from Square and the hours each person worked in the pool. The split is then tips divided by pool hours, multiplied by each person’s hours. Decide who is in the pool before you start. Managers and owners may not take from a tip pool, and employees who are not in tipped roles may not be eligible under your state’s rules.

Locations and the business day

A bar that closes at 2 a.m. has a Saturday that ends on Sunday morning. Check that Square’s business day and the EZTime workweek line up. If one location closes at midnight and another at 2, set up each location separately instead of using one cut-off for both.

Questions to settle before you start

Four numbers worth tracking each week

Weekly POS and labor measures
Measure Formula What it tells you
Labor cost percentage Labor cost / net sales x 100 Whether wages are in line with revenue
Sales per labor hour Net sales / labor hours How productive each scheduled hour was
Transactions per labor hour Number of sales / labor hours Workload, useful where tickets are small
Scheduled vs actual hours Actual hours / scheduled hours Whether the plan was followed

Pick two of these, not all four, and look at them by daypart. A single weekly number hides the hour in which the money is lost.

Turning the numbers into next week’s schedule

A comparison only pays off if it changes the schedule. Once a week, take the daypart with the lowest sales per labor hour and ask one question: could one shift start later or end earlier without hurting service? Make one change, keep it for two weeks, and check whether sales held. In EZTime, the schedule is linked to the clock and labor cost is shown as you build the week, so you can see the effect of moving a shift before you publish it.

Tip rules to know before you build the pool

Under the Fair Labor Standards Act, as amended in 2018, an employer may not keep employees’ tips, and managers and supervisors may not take part in a pool of tips. If you pay at least the full federal minimum wage without a tip credit, the U.S. Department of Labor allows a pool that includes back-of-house staff such as cooks and dishwashers. If you take a tip credit, the pool may include only employees who customarily and regularly receive tips.

Many states go further. Some do not allow a tip credit at all, and some restrict who may share in a pool. Check your state labor department’s guidance before you include new roles. EZTime includes EzTip for tip pooling; ask the team how it fits the pool rules you choose, and keep the split tied to approved timecards.

A worked example: splitting Saturday’s tips

Saturday tip pool by hours (fictional)
Employee Role Hours in pool Share
Maya Barista 8 $136.00
Luis Barista 6 $102.00
Ari Cashier 4 $68.00
Total 18 $306.00

Card tips from Square for the day were $306.00, or $17.00 per pool hour. The shift supervisor worked 8 hours that day but is not in the pool. If an hour is corrected after the split, rerun the split for that day rather than adjusting one person.

Questions people ask

Does EZTime integrate with Square?

It can, through the EZTime API (Premium plan) or a custom integration built by EZTime’s development team. Ask the EZTime team how it works for your account and which data points are available for your plan.

Do staff need to clock in on the Square register?

Not necessarily. Many teams use the EZTime app, a kiosk or an NFC tag, which also works for staff who never use the register. Decide which you prefer before you roll out.

Can I compare more than one location?

Yes, if you keep each location separate on both sides so the comparison is like for like.

Can a shift supervisor share in the tip pool?

Under the FLSA, managers and supervisors may not receive tips from a mandatory pool. Some may keep tips they receive directly for service they provide, so check the DOL rules for your case.

Should I look at sales per labor hour or labor cost percentage?

Both are useful. Sales per labor hour is easier to compare between dayparts, and labor cost percentage is what most budgets use.

Keep reading

Labor cost percentage

Wages as a share of revenue

POS and time clocks

How time clocks and registers fit

Restaurant labor cost

Targets for food service

Useful next steps

Talk through your Square setup

Book a demo and bring one pay period or one week of sales. We will go through what you want to see and which data is needed.

Square is a trademark of its owner. EZTime is not affiliated with or endorsed by Square. This page is general information, not legal, payroll or tax advice. Rules differ by state, city and contract, and they change. Check with a qualified professional before you act. Numbers in examples are made up.