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lee96008
Level 1

Credit Card Tips

I'm helping someone who uses QBO Payroll.  Their servers take their credit card tips out each night in cash.  They have been paid for their hours but no transactions for their tips.  There are records of them on the daily sales sheets they fill out.  Were never added in with employees wages,, and taxes were never paid.  They paid sales tax on total credit card charges.  How do I handle this?  This is for 1 1/2 years. Thanks for any help you can give.  

Solved
Best answer January 05, 2023

Best Answers
MaryLandT
Moderator

Credit Card Tips

Thank you for sharing complete details about how to record credit card tips, lee96008. I'll help you handle this in QuickBooks Online (QBO).

 

In QBO, you can add those credit card tips by setting up an additional pay type on the employee's profile. Let me walk you through the steps.

 

  1. Select the Payroll menu and choose Employees.
  2. Click the name of the employee.
  3. In the Employee details section, click the Pay pencil icon.
  4. Go to the How much do you pay [employee]? section. Then, choose Addition pay types.
  5. Look for the Paycheck Tips and check its box.
  6. Click Done.

 

You can then enter the amount in the PAYCHECK TIPS column when creating a paycheck. Please view the screenshot below for your reference.

 

In addition to this, you can run the Payroll Summary by Employee report in QuickBooks Online. This shows the comprehensive data of wages, deductions, and tax info, totaled by employee or period. For more insight, feel free to check out this article: Run payroll reports.

 

Keep me posted if you have other questions about managing credit card tips in QuickBooks. I'll be happy to assist you again. Wishing for you and your business continued success. 

View solution in original post

3 Comments 3
MaryLandT
Moderator

Credit Card Tips

Thank you for sharing complete details about how to record credit card tips, lee96008. I'll help you handle this in QuickBooks Online (QBO).

 

In QBO, you can add those credit card tips by setting up an additional pay type on the employee's profile. Let me walk you through the steps.

 

  1. Select the Payroll menu and choose Employees.
  2. Click the name of the employee.
  3. In the Employee details section, click the Pay pencil icon.
  4. Go to the How much do you pay [employee]? section. Then, choose Addition pay types.
  5. Look for the Paycheck Tips and check its box.
  6. Click Done.

 

You can then enter the amount in the PAYCHECK TIPS column when creating a paycheck. Please view the screenshot below for your reference.

 

In addition to this, you can run the Payroll Summary by Employee report in QuickBooks Online. This shows the comprehensive data of wages, deductions, and tax info, totaled by employee or period. For more insight, feel free to check out this article: Run payroll reports.

 

Keep me posted if you have other questions about managing credit card tips in QuickBooks. I'll be happy to assist you again. Wishing for you and your business continued success. 

lee96008
Level 1

Credit Card Tips

Thank you so much, I did just as you instructed and its perfect!  

JessT
Moderator

Credit Card Tips

Hi lee96008!

 

I'm glad that the instructions provided by my colleague were of assistance to you in properly handling employee tips. It's important to ensure that all financial matters are handled correctly to avoid any issues in the future. If you have any other questions, please don't hesitate to reach out. We're here to help in any way that we can.

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