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lydbrewer
December 18, 2018
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Employee Cash Tips

  • December 18, 2018
  • 1 reply
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Using QB Online--How can I handle cash tips for employees who leave and no longer work for us but I haven't been able or had enough time to enter cash tips in a payroll check for them and haven't been able to tax those tips either?

Best answer by

Hi lydbrewer,

 

I'd be glad to help you record the cash tips. 

 

Since the employee is no longer active, you'll want to run a payroll check for the cash tips alone. First, let's make sure the employee status is active (Employment>Status>change to Active). Then, turn on the Cash Tips pay type. Finally, run a payroll check. 

 

So here's how to turn on this pay type:

  1. Go to Workers.
  2. In the Employees tab, select the employee.
  3. Click on the edit icon for Pay. 
  4. Check the box for Cash Tips.
  5. Click on Done.

To run the payroll:

  1. In the Employees tab, click on Run payroll.
  2. Select the pay schedule and enter the cash tips amount. 
  3. Click on Preview payroll.
  4. Click on Submit payroll.
  5. Click on Finish payroll.

Let me also share this great reference about cash tips: https://community.intuit.com/articles/1767102.

 

Have a great day! 

1 reply

A
Anonymous
Answer
December 18, 2018

Hi lydbrewer,

 

I'd be glad to help you record the cash tips. 

 

Since the employee is no longer active, you'll want to run a payroll check for the cash tips alone. First, let's make sure the employee status is active (Employment>Status>change to Active). Then, turn on the Cash Tips pay type. Finally, run a payroll check. 

 

So here's how to turn on this pay type:

  1. Go to Workers.
  2. In the Employees tab, select the employee.
  3. Click on the edit icon for Pay. 
  4. Check the box for Cash Tips.
  5. Click on Done.

To run the payroll:

  1. In the Employees tab, click on Run payroll.
  2. Select the pay schedule and enter the cash tips amount. 
  3. Click on Preview payroll.
  4. Click on Submit payroll.
  5. Click on Finish payroll.

Let me also share this great reference about cash tips: https://community.intuit.com/articles/1767102.

 

Have a great day! 

    L
    lydbrewerAuthor
    December 26, 2018

    So is this how that works--

    I enter the cash tips as I normally do if they were still employed and had payroll hours and pay.  

    Except this way just adds the cash tip amount that they've already taken but haven't paid taxes on yet.

    Then the IRS/State will tax them if necessary on the amount I've added in as cash tips but that they haven't paid taxes on yet.

    HoneyLynn_G
    HoneyLynn_G
    December 26, 2018

    Hi there, @lydbrewer.

     

    Thanks for providing those extra details. I can share some recommendations for how to handle cash tips for employees who no longer work for you.

     

    In QuickBooks Online, we can only calculate the cash tips for you. For legalities on how to handle the taxes, I recommend consulting your accountant for guidance.

     

    Let me know if you have additional questions about payroll. I'd be happy to help you more. Have a good one.

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