Want to set an Payroll Item List "Tips" and to make sure taxes are decuted and the this ends up on the W2's at the end of the year.
It's nice to see you here today, @Raman1,
I'm here to help you set up employee's tips in the Payroll Item List window.
Let's get started by creating a payroll item for the taxable tip amount. Use this item to keep track of all the tips your employee received.
Next, let's create another item for the tips retained by the employee. This is used to take away the amount your employee physically received, so it doesn't add up to their net pay.
Once done, you can now assign these items on the employee's paycheck. You can also check this article which has the complete instructions on setting up tips in QuickBooks: Report tips in and out on employee paychecks in QuickBooks Desktop Payroll.
Please keep me updated if you have further questions about tips. I'm always free to help you anytime. Have a nice day!