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January 3, 2024
Question

I'm a restaurant with employees that have cash tips. Does anyone know why the cash tips that need to be added to their gross wages are being put into their net wages?

  • January 3, 2024
  • 1 reply
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1 reply

January 3, 2024

Hi there, @Pegann

 

Let me share some information about cash tips and how it's recorded in the employee's payroll in QuickBooks Online.

 

QuickBooks Online offers various types of tips, like cash tips, paycheck or credit card tips, allocated tips, and tip credit. If you have enabled cash tips for your employees, any tips they received directly won't be included in their Gross wage and will be reflected in the Net wage instead. 

 

However, if you like to add them to their gross wage, you may use the paycheck tips as an alternative. This will allow you to view the tips in the gross and in the net wage. Follow the steps below to set this up in your employee's profile:

 

  1. Go to Payroll, then select Employees.
  2. Select an employee, then on the Pay types section, click Edit.
  3. In the Additional Pay Types, select Paycheck Tips.
  4. Click Save.
  5. Follow the same steps for all your employees.

 

Afterward, you can run a payroll and enter the tips in the Paycheck tips column.

 

Furthermore, you can generate a Payroll report to get a closer look at your business finances and find reports about employee info, wages, taxes, and deductions. 

 

You're always welcome to reach back if you have further questions about managing tips in QuickBooks. Our team will always be ready to lend you a hand and assist you. Have a wonderful day ahead!