How to record bank withdrawal to pay employee in cash?

Don’t you love when owners do things like this?  You should record the paycheck as normal.  Make a not that the employer withdrew cash in lieu of the check.  Clear it like a check.  put cash in the check # place.  

also, if you create a paycheck it will automatically deduct taxes. To stop this from happening for this one time pay, edit the Employee details  Withholdings and mark as Do Not withhold.

Be sure to change this back to what it was for the next paycheck.

Do we do anything differently than the above mentioned if we already deducted taxes from the cash paid to the employee?

How do is this recorded in Quickbooks when depositing the employee check that you cashed back to the bank deposit?

Hello there, @lydbrewer.

If you've paid your employee using a physical check and let him or her cashed it out, you can just create a regular payroll. Just make sure you're using paper check for recording purposes. While, if you've paid your employee using a regular paycheck but was unable to cashed it instead you've paid her with cash. Let me share some details on how  to document this transaction.

First, let's run a regular payroll:

1. Go to the Employee's menu.
2. Choose Employees.
3. Select the Run Payroll button.
4. If you're using different pay schedule, choose the specific pay schedule for the paper check.
5. Click Continue. 
6. Mark the name of the employee.
7. Enter the employee paycheck, then click Preview Payroll.
8. Hit Submit Payroll.
9. Click Finish Payroll.

Once completed, let's create a bank transfer in QuickBooks to account the movement of money from Cash on Hand or Petty Cash to your payroll bank account. 

1. Click the Plus Icon (+).
2. Choose Transfer.
3. From the Transfer Funds From drop down list, select the bank account that the funds are coming out of.
4. From the Transfer Funds To drop-down list, select the bank account the funds are being deposited into.
5. In the Transfer Amount field, enter the amount being transferred.
6. Edit the Date.
7. Add a memo on the Memo field to indicate the reason for the bank transfer.
8. Click Save and Close.

Alternately, you can create a journal entry to record the entire transaction. For more detailed steps, you may check this article: Create a journal entry.

For additional reference, you can check these links:

• How to create and print a paper check
• Transfer funds between accounts

If you're referring to something else or you have other questions, feel free to leave a post below. I'm always here to help.

All tips are credit card, I don’t do payroll through quick books.

so I with draw $500 cash out of business account to pay employees their tip, how do I record this transaction in quickbooks online

I'm here to provide some information on how to record a tip for employees using cash, @9130354670739466.

Since you're not doing payroll through QuickBooks, we can simply set up paychecks manually. If you haven't already, first thing to do is to create new accounts in your Chart of Accounts to track your payroll liabilities and expenses.

After you pay your employees outside of QuickBooks, create a journal entry.

1. Get your employees' payroll pay stubs or a payroll report from your payroll service.
2. Click  + New.
3. Choose Journal Entry.
4. Under the Journal date, enter the paycheck date.
5. To track the paycheck number, enter it in the Journal no. field.

Use the info from your payroll report to create the journal entry. You can also create separate journal entries for each employee if you need to break out the details.

For more information, you may check out this article: Manually enter payroll paychecks in QuickBooks Online.

Additionally, there are several payroll reports that you can use to view relevant information about your business and employees. For further insights, you can review this link: Run payroll reports in QuickBooks.

Feel free to get back in here if you have further concerns with recording tips for employee in QuickBooks. I'm always around to help. Keep safe!