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My husband and I just opened a restaurant. How do we need to record and report credit card tips for our employees? We want to pay credit card tips at the end of shift.

 
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Best answer 2 weeks ago

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QuickBooks Team

Re: My husband and I just opened a restaurant. How do we need to record and report credit card ti...

Congratulations on your newly opened restaurant, @chantae-simmons.

 

I'd like to begin by thanking you for choosing QuickBooks to serve you with your accounting needs. I'd be happy to walk you through on how to record and report credit card tips for your employees.

 

To record the tips in QuickBooks Online, you have to create a tips liability account first. Take the following steps to create the liability account:

  1. Click the Gear icon in QuickBooks.
  2. Select Chart of Accounts.
  3. Click New at the top right.
  4. Choose Other Current Liabilities in the drop-down list.
  5. Select Other Current Liabilities under Detail Type and enter “Tips” in the Name field.
  6. Click Save to save the information.

To record the tips received by employees in QuickBooks, please follow these steps below:

  1. Click the plus sign at the top
  2. Select on Check.
  3. Choose the bank account to pay the tips from.
  4. Select the employee to pay the tips to.
  5. Enter the amount and select Tips in the Account field.
  6. Click Save.

I've included here an article that you can check out for more details about handling tips in QuickBooks: Tracking tips.

 

Also, to give you more information on how QuickBooks works, you may check out these resources below:

If you need further assistance with the process, you can always reach out to our Customer Care Team. They have the tools that can guide you through the steps. 

 

That should do the trick, Chantae.

 

I want to ensure that you'll be able to record tips properly so please let me know how it goes. I'll be around to help if there's anything else you need. Wishing you and your business continued success!

1 Comment
QuickBooks Team

Re: My husband and I just opened a restaurant. How do we need to record and report credit card ti...

Congratulations on your newly opened restaurant, @chantae-simmons.

 

I'd like to begin by thanking you for choosing QuickBooks to serve you with your accounting needs. I'd be happy to walk you through on how to record and report credit card tips for your employees.

 

To record the tips in QuickBooks Online, you have to create a tips liability account first. Take the following steps to create the liability account:

  1. Click the Gear icon in QuickBooks.
  2. Select Chart of Accounts.
  3. Click New at the top right.
  4. Choose Other Current Liabilities in the drop-down list.
  5. Select Other Current Liabilities under Detail Type and enter “Tips” in the Name field.
  6. Click Save to save the information.

To record the tips received by employees in QuickBooks, please follow these steps below:

  1. Click the plus sign at the top
  2. Select on Check.
  3. Choose the bank account to pay the tips from.
  4. Select the employee to pay the tips to.
  5. Enter the amount and select Tips in the Account field.
  6. Click Save.

I've included here an article that you can check out for more details about handling tips in QuickBooks: Tracking tips.

 

Also, to give you more information on how QuickBooks works, you may check out these resources below:

If you need further assistance with the process, you can always reach out to our Customer Care Team. They have the tools that can guide you through the steps. 

 

That should do the trick, Chantae.

 

I want to ensure that you'll be able to record tips properly so please let me know how it goes. I'll be around to help if there's anything else you need. Wishing you and your business continued success!

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