I set up tips income for employees per suppport last year but am not seeing those tips appearing in the relevant boxes in the W-2. Need help to get this set up correctly?

Raman1 · ‎January 05, 2020

MaryLandT · ‎January 05, 2020

I'm glad to lend a hand, Raman1.

Tips In is the payroll item to report all tips the employee received which will appear in W-2, box 7. And, this will increase wages box 1 and 5.

You're may be referring to the allocated tips which will show in box 8 of the form.

To correct this, let's create another item. Then, use it when you run payroll. Here's how:

Go to the Lists menu, select Payroll Item List.
Select Payroll Item, then click New.
Choose Custom Set Up, then select Next.
Choose Addition and select Next.
Name the item (for example, Tips In), then select Next.
Choose the Expense account, then select Next.
On the Tax tracking type window, choose Reported Tips, then click Next.
On the Calculate based on quantity window, choose Neither, then select Next.
On the Limit Type window, select Finish.

Please refer to this article, Report tips in and out on employee paychecks if you need to track tips out. Use the steps under the Create a payroll item for tips retained by the employee section.

Keep me posted if you have follow-up questions, and I'm always happy to help you out.

View solution in original post

BigRedConsulting · ‎January 05, 2020

Tips In should be set up as an addition item on your paychecks using the Tips tax tracking type, and Tips Out (if you use it) should be set up with no tax tracking type.

Is that how your tips items are set up?

If, somehow, your Tips Out item is set up using the Tips tax tracking type, then you have a big mess to fix, since it means you have under-taxed and under-reported all employees where you have ever used the item on their paychecks, for all periods you used it.

Raman1 · ‎January 05, 2020

I have it set up as :

Under Payroll Item List

Item Name - Tips

Type - Bonus

Tax Tracking - Compensation

I know I have been deducting tax and also paying the employer portion of the taxes, but they are not showing on the W-2 in box 7, 8 & 18 which is where I assume they have to show up as well.

When you say Tips In where do I find this. I has support help me set things up but I don't think they ever mentioned Tips In [for credit card tips, which is all we have}

Raman1 · ‎January 05, 2020

I set up in Payroll Item List as follows [as per the Intuit support]

Item Name - Tips

Type - Bonus

Amount - 0.00

Tax Tracking - Compensation

I know I have been deducting taxes and paying they as required. I went to print my W-2 and the tips are not showing up under box 7, 8, 18 which is where I assume they should be listed.

Support never mentioned anything about Tips In, what is this? How do i get to this, where do I go to have the tips show up in the appropriate boxes on the W-2

MaryLandT · ‎January 05, 2020

I'm glad to lend a hand, Raman1.

Tips In is the payroll item to report all tips the employee received which will appear in W-2, box 7. And, this will increase wages box 1 and 5.

You're may be referring to the allocated tips which will show in box 8 of the form.

To correct this, let's create another item. Then, use it when you run payroll. Here's how:

Go to the Lists menu, select Payroll Item List.
Select Payroll Item, then click New.
Choose Custom Set Up, then select Next.
Choose Addition and select Next.
Name the item (for example, Tips In), then select Next.
Choose the Expense account, then select Next.
On the Tax tracking type window, choose Reported Tips, then click Next.
On the Calculate based on quantity window, choose Neither, then select Next.
On the Limit Type window, select Finish.

Please refer to this article, Report tips in and out on employee paychecks if you need to track tips out. Use the steps under the Create a payroll item for tips retained by the employee section.

Keep me posted if you have follow-up questions, and I'm always happy to help you out.

BigRedConsulting · ‎January 06, 2020

RE: Type - Bonus, Tax Tracking - Compensation

That's why you don't see any tips on the W-2, as the item you describe won't be found to be tips, since it isn't set up with the tips tax tracking type.

The tips tracking type is found on the tracking type list when you set up an addition or deduction per the instructions for setting up tips, or it will be set for you if you add a new item, use the quick item setup option, and then pick tips.

Since all Wage items are of the type Compensation, you can't change that for your Bonus.

Topics

Training

Community

Resources

I set up tips income for employees per suppport last year but am not seeing those tips appearing in the relevant boxes in the W-2. Need help to get this set up correctly?