Our company is in a line of work that rarely gets tips. I had a customer call and ask to pay a $50 tip to an employee over the phone with a credit card. I created a sales receipt for the tip under the a service item called "tips and gratuity". This item is linked to an "other current liablity" account. The tip was then payed to the employee on their paycheck. We outsource payroll so I just reported to payroll to add the $50 to their check. Our payroll company takes one lump sum out of our bank account for payroll. I then create a journal entry to record payroll in Quickbooks. My question is how do I remove the $50 tip paid to the employee out of the liability account and ALSO show the $50 that is showing on my payroll report (as other). I want my payroll report totals to match my quickbooks report at year end. (I did try doing a journal entry that debited the $50 to the liability account and that did clear it to zero, however I'm not sure how to show the $50 in quickbooks as it is reflected on my payroll report.) Please help!!
You're on the right track in recording your employee tips from an outsourced payroll in QuickBooks Desktop (QBDT), @AGMAIN.
When you outsourced payroll, you'll have to manually enter your employees' pay information. You've already removed the $50 tip paid to the employee out of the liability account by the time you've created a journal entry. Then, recorded the said amount to QuickBooks since it's already in your payroll reports.
Click the Customize Report button to modify your report.
After that, you can select and double-click your desired transaction or amounts on the report to view its contents or complete details. Then, you can save the report's customization settings for later use. You can refer to this article for the steps: Create, access, and modify memorized reports.
Additionally, here's an article that'll further guide you in completing certain tasks in QuickBooks to close out the previous year and prepare for the upcoming one: QuickBooks year-end guide. It contains detailed information and steps on how to complete a certain task in the system.
Please know that you're always welcome to comment below if you have other concerns or follow-up inquiries about managing payroll and employee transactions in QBDT. I'm just around to help. Take care.