How do you account for tips paid at a restaurant? and avoid tax being calculated

Hi nick-klisouris-g,

It's a pleasure to see you in Community.  Welcome!  QuickBooks Online provides the ability to record tips with your team, a couple of ways, so you can select the best fit for your business.  I'd be glad to assist!

Tips can be added to QuickBooks Online Payroll preferences.  Another option would be to add your employee as a supplier, then create a cheque.  Here's a helpful guide for your reference.

If you're not confident on which option to select, I encourage you to speak with an accounting professional.  They'll be able to provide their expertise and best course of action, in keeping within government guidelines.  If you don't have an accountant, we can help you locate a ProAdvisor in your local area.

Feel free to reach back out, if you have any other questions.  We're always happy to help!