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grechnitz
Jan 17, 2024 2:03 AM UTC
Question

Are tips included in reported income when retirement funds are withheld as a percentage of gross income?

For the Colorado Secure Savings program, Intuit withholds a percentage (5%) of "gross income" for a contribution to the retirement program.  Intuit is not including tips that are part of employee earnings. Why is that?

3 replies

Adrian_A
Adrian_A
Jan 17, 2024 3:41 AM UTC

Hi grechnitz,

 

Let's set up a payroll item for the tips so the system will include them on your employee's paycheck and payroll forms.

 

Here's how:

 

  1. From the Payroll tab, select Employees.
  2. Select the employee's name.
  3. Go to the Pay types section.
  4. Under Common pay types, tick either Paycheck tips or Cash Tips.
  5. Click Save.

 

From there, you're good to enter the amount for tips whenever you run payroll.

 

I've also added this article to know the different types of tips: Determine what type of tips your employees received.

 

Furthermore, you can pin this link to learn more about tips: How to record tips and gratuity.

 

You can always post in the forum whenever you have concerns about recording tips.

grechnitzAuthor
Jan 17, 2024 11:41 PM UTC

Our paycheck tips ARE being recorded as a Pay Type. And they do show as part of Gross Wages.

 

However, Intuit is not including the tips when calculating the retirement contribution.

Adrian_A
Adrian_A
Jan 18, 2024 12:38 AM UTC

I appreciate you for getting back to us, grechnitz.

 

Since you've already added a payroll item for the tips, I suggest reaching out to our phone support team so we can look into your account further.

 

To contact them, you can follow these steps:

 

  1. Click the ? Help icon.
  2. Go to the Search tab.
  3. Click Contact Us.
  4. Select Ask about something else.
  5. You may type in The system isn't calculating tips.
  6. Click Continue.
  7. Select either Chat with us or Schedule appointment.

 

Furthermore, you can check this article as your guide when preparing for taxes: Pay and file payroll taxes.

 

You can always post in the forum whenever you have concerns about taxes.

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