If we include an employees reported cash tips in the appropriate box in the payroll submissions, will QuickBooks automatically withhold taxes on the wages and cash tips?

Hello there, @time.

Indeed, you are correct. When you enter cash tips in the proper box during the payroll submission, QuickBooks will automatically withhold taxes from the wages.

In addition, cash tips are gratuities that your staff members get in person from clients in exchange for cash rather than a wage. Cash recommendations also include advice provided through credit card purchases converted to cash. These tips are taxable but shouldn’t be included in employees’ net pay, as they've already received it.

For more details about recording tips and how to report your employee’s earned tips in QuickBooks :

• Pay and report tips
• Share tips with your team

Tag me in this thread if you have follow-up questions about handling tips and other QuickBooks concerns. I'm always here to help you.