Do tips get calculated in California payroll tax?

Yes, @criscitopizza, QuickBooks Online can calculate tips as part of the payroll tax in California, provided that the state requires the application of payroll taxes to tips. 

When setting up payroll in QuickBooks Online (QBO), you can specify how you want tips to be handled, and whether they should be included in payroll tax calculations. This can help ensure that your payroll taxes are accurately calculated and reported in accordance with California state regulations.

There are different types of tips that your employee can receive. Cash tips are tips your employees receive directly from customers in cash, not through a paycheck. Tips given through credit card charges converted to cash are also considered cash tips. Please read this article for more details: Pay and report tips.

Moreover, you may visit this article to learn how to record and add a tip or gratuity in QuickBooks Online: Share tips with your team.

If you've got further questions about employee’s earned tips, leave your comment below. We'd be glad to answer them for you.