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3 replies

Tori B
Tori B
February 25, 2020

Hey there, @rooseveltbarbers.

 

Thanks for reaching out. 

 

Great news, you can add tips to employee's checks with QuickBooks Online. 

 

Here's how:

 

  1. Click the +New. 
  2. Under the vendor's column, hit Check. 
  3. In the payee columns, select the employee who you're paying the tip to. 
  4. From the Bank Account drop-down, choose the account from where you are making the liability payment.
  5. Under Category, hit Undistributed Tips. Enter the tip amount in the Amount column. 
  6. Then fill out the rest of the Check as usual and click Save and Close. 

For more details, check out: Share tips with your team.

 

Feel free to reply to this thread should you have more questions or concerns. Take care and have a great week. 

 

 

 

 

D
daniwildterra
July 17, 2020

How do I add tips to paycheck, so that it deducts taxes?  My employees prefer to be taxed on their paycheck for tips and not receive a separate check.

R
ReymondO
July 18, 2020

I'll help you add tips to your employee's paycheck, @daniwildterra.

 

Let simply follow these steps:

 

  1. Go to the Payroll menu and select Employees.
  2. Click the name of the employee.
  3. In the Employee details section, select the Pay pencil icon.
  4. Go to the How much do you pay [employee]? section. Then, select Addition pay types.
  5. Look for the Paycheck Tips and check its box.
  6. Select Done.

 

Once done, you can now enter the amount in the PAYCHECK TIPS column when creating a paycheck. Please check the screenshot below as your reference.

In addition, you can run the Payroll Summary by Employee report in QuickBooks Online Payroll. This will show the comprehensive report of wages, deductions, and tax info, totaled by employee or period. Just go to Reports and look for Payroll Summary by Employee report.

 

Don't hesitate to tag my name in the comment section below if you have other concerns or questions. I'm always ready to help.

S
SBWC93
February 24, 2023

I transfer the employees tips each day to them and it is showing up in my bank feeds. How do I enter them so that it will balance to what I have paid them on their paychecks? Also, when I run payroll I use the paycheck tips, so they can get taxed. 

MariaSoledadG
MariaSoledadG
February 24, 2023

I'll show you how to enter the tips for your employees so it would balance with their paycheck, SBWC93.

 

In QuickBooks, you're required to track and withhold taxes once your employees received tips from customers. To enter tips correctly, you'll have to set them up as payroll items. To do so, follow the steps below: 

 

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Personal Info, select Edit.
  4. In Additional pay types, select Cash Tips or Paycheck Tips.
  5. Select Save.

 

After you've run your scheduled payroll, you can now enter the amount for tips. For more information, check this article for more information and detailed steps: Pay And Report Tips.

 

Furthermore, QuickBooks Online (QBO) offers different kinds of payroll reports that will show useful information for your business and employees. To see the lists, I've got this article for your reference: Run Payroll Reports In QuickBooks Online Payroll.

 

Please get back to us if you have any other questions when recording tips or anything with payroll. The Community is always right here to help you anytime. 

W
whyshouldnti
June 23, 2023

I am attempting to go from desktop to online. In desktop there is "reported cash tips" and "reported cash tips offset". How do we get the online version to add the offset function?

R
rvrfrf
June 23, 2023

Thanks for joining the Community and getting involved with this thread, whyshouldnti.
 

I can certainly understand how an ability to use a reported cash tips offset function could be useful and have submitted a suggestion about it as of today.
 

You can also submit your own feature requests while using QuickBooks.
 

Here's how:

 

  1. Use the Gear icon, then go to Feedback.
  2. Enter your suggestion(s) in the Have feedback? window.
  3. If necessary, attach a file with your Camera icon.
  4. Select Next.

 

Your feedback's definitely valuable to Intuit. It will be reviewed by our Product Development team and considered in future updates. You can stay up-to-date with the latest news about your product by reviewing Intuit's Product Updates webpage.
 

I've included a detailed resource about working with tips in QuickBooks Online Payroll which may come in handy moving forward: Pay & report tips
 

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

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