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December 29, 2023
Question

Have cash tips as other pay for payroll after running payroll the tip amount was not added as income. What do I need to do to correct this?

  • December 29, 2023
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1 reply

December 29, 2023

Thanks for joining the Community, michaellalay15-g.

 

When tips are collected and you're entering income, you'll want to make sure your portion representing tips is categorized in the Undistributed Tips account, rather than in any income account.

 

If you enter income from your bank feed, click on the transaction that contains both income and tips and select Split. Afterwards, you'll be able to enter your appropriate amounts on each line for Income and Undistributed Tips.

 

In regard to how you should go about correcting tips that may have been entered incorrectly, I'd recommend working with an accounting professional to identify the best approach. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

 

I've also included a couple detailed resources about working with tips which may come in handy moving forward:
 

 

If there's any additional questions, I'm just a post away. Have a wonderful day!