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larry-laskatarin
November 6, 2021
Solved

How do I add tips to a sales receipt, which are charged and then taken by the server in cash?

  • November 6, 2021
  • 1 reply
  • 0 views
We are a small restaurant
Best answer by AlexV

Not sure if I mentioned that I'm using QB online payroll; I didn't see an option to add a non paid tip.


Hi Larry!

 

Thanks for the reply. You can follow the steps shared by Rea_M on how to receive the tips. I'm here to show you how to pay your employees.

 

You can use a liability account as an income account when setting up a tip service item. However, we're unable to offset the liability balance when we run a payroll. I suggest not to use a liability account.

 

You can add a Cash Tips pay type so that you can include this when running payroll. Cash tips are used to track those tips paid in cash rather than through their paycheck for taxes purposes. Follow these steps:

  1. Go to the Payroll menu and select Employees.
  2. Click the employee's name, then Edit employee.
  3. From the How much do you pay [employee]? section, click + Add additional pay types (like overtime and sick pay).
  4. Find the Cash Tips and check it, then Save.

 

When you run payroll, enter the tip amount in the Cash Tips field. Please check these links. These will explain the different pay types in QuickBooks Online Payroll and how to track the tips:

 

Lastly, here's the link if you need to run payroll reports: Run payroll reports.

 

Post again here if you have additional concerns with payroll. Take care!

1 reply

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Rea_M
November 6, 2021

Adding tips to your sales receipts in QuickBooks Online (QBO) is a breeze, and I'm here to show you how, @larry-laskatarin.

 

When activating the Tips (Gratuity) feature, there'll be a Tip field that'll automatically display on your sales receipt. Tips can be found by the totals/subtotals and are not affected by tax or discounts.

 

When your customers are charged and then taken by your servers as cash, you can create a tip service item then manually add it to your sales receipt every time you make a sale. In case you want a separate income account to track your tips, you can set up a new one in QBO.

 

Once you're ready, follow these steps to create a tip service item:

 

  1. Go to the Sales menu.
  2. Select the Products and Services tab.
  3. Click New.
  4. Choose Service in the Product/Service information window.
  5. Enter the necessary information (i.e., Name, Class, and Income account).
  6. Click Save and close.

 

Then, add the tip item on the second line or right after all your customer charges of the sales receipt. 

 

Also, you can add tips on employees' paychecks in QBO. If you wish to know more about this process, you can refer to this article: Share tips with your team. It also includes details about paying out tips before depositing the final amount to employees' bank accounts.

 

Please don't hesitate to let me know if you have other concerns about tips, sales receipts, and managing sales transactions in QBO. You can drop a comment below, and I'll gladly help. Keep safe always, @larry-laskatarin.

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larry-laskatarinAuthor
November 10, 2021

Hi Rea_M,

What I’m actually looking for is a way to accomplish the following:
I receive tips by credit card payment, which the employee takes home in cash each day.  I need to receive the credit card payment, into a liability account, then post it onto the employee’s check as a non paid tip so that taxes will be taken out of the total amount received.
Thanks fo r the help!
Larry...
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larry-laskatarinAuthor
November 10, 2021

Not sure if I mentioned that I'm using QB online payroll; I didn't see an option to add a non paid tip.

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