Skip to main content
L
LilBuga
August 3, 2023
Question

Tips as compensation not included in gross wages

  • August 3, 2023
  • 1 reply
  • 0 views

Tips are set up on employees payroll for tax purposes:  Tips-In as compensation and Tips-Out as a deduction, and charged to the wages account, to wash

 

WA Paid Leave and WA Cares Fund - premiums are calculated, not to include Tips

 

Employer pays all of the Paid Leave premiums.  WA Cares Fund are deducted from the employees.

 

I ran a Payroll Checkup and the Tips as Compensation is flagged with a notation "NonStandard Taxability"

What does this mean?

 

How do I setup the deduction for WA Cares Fund for each employee, not to include tips, and the same for the WA Paid Leave to be paid by the employer? 

 

Currently, I'm "cheating" by calculating and recording in payroll manually.  

 

 

1 reply

D
DebSheenD
August 3, 2023

Hello there, @LilBuga.

 

Let me share some information about WA Cares Fund and Tips as Compensation in QuickBooks Desktop (QBDT).

 

Encountering "NonStandard Taxability" for "Tips as Compensation" in Payroll Checkup means your payroll setup deviates from standard tax rules defined by federal and state regulations for tip handling. The way tips are managed and taxed may not align with typical taxability norms.

 

To set up the deduction for WA Cares Fund and WA Paid Leave for each employee, excluding tips, and have the employer pay for WA Paid Leave in QBDT, follow these steps:

 

  1. Go to Employees, then select Employee Center.
  2. Double-click your employee's name.
  3. Go to the Payroll Info tab.
  4. From Additions, Deductions, and Company Contributions, add the reimbursement item.
  5. Repeat steps 2-4 for each employee.

 

You can visit this article for more information: Set up Washington Cares Fund payroll tax.

 

Additionally, here's an article in case you'd like to verify and add more details to your report to ensure your data stays accurate inside QBDT: Customize reports in QuickBooks Desktop.

 

If you have any more questions or need further assistance, feel free to reply on this thread. I'm here to help you with anything you need.

M
MMM Consulting
October 19, 2023

Same issue. PFML doesn't include tips but the systems is calculating WA Cares Fund and including types. This I believe is a Quickbooks issue effecting anyone in WA. Will be calling to correct this issue. 

M
MMM Consulting
October 19, 2023

tips not types

Terms & ConditionsAccessibility statement