Server payroll check coming out to negative number

Thanks for visiting the Community, Kbeyen3.

I can see how important for your business to have accurate paycheck records. This will ensure correct information on taxes and forms.

Based on the scenario, let’s download the latest tax table before performing any payroll tasks. These updates will provide accurate rates and calculations for supported state and federal tax tables.  

Once done, create the payroll item for your tips. The process depends on how your employees collected them.

If you report all tips the worker received, add a taxable tip pay type and add it on the paycheck. Let’s go to the Payroll Item List page to set it up.

1. Press the Lists menu at the top bar to choose Payroll Item List.
2. At the bottom of the screen, click the drop-down arrow for Payroll Item and select New.
3. Tick the radio button for Custom Setup and click Next to continue.
4. In the Payroll item type window, select Addition and Next.
5. Enter the payroll item’s name in the box (tips) and tap the Next button.
6. Pick the expense account you wish to use to track the item and hit Next.
7. In the Tax tracking type window, choose Reported Tips.
8. Then, press Next and Next.
9. In the Calculate based on quantity window, tick the radio button for Neither and hit Next.
10. Click Finish.

To take away the tips that the employee physically received, create a deduction item to track it. Follow the instructions in this article and go to the Create a payroll item for tips retained by the employee section: Report tips in and out on employee paychecks in QuickBooks Desktop Payroll.

We also have resources on how to handle tips with credits and allocated tips. Each one contains instructions about the setup process.

• Manage tip credits on your employees' paychecks
• Create an allocated tips payroll item

Feel free to visit the Community again for any QuickBooks concerns. I’m only a few clicks away for help. Have a good one.