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davidward-email
Level 1

How do I get tips in QB Payroll to map to the appropriate liability account? Currently, I can only map tips in a paycheck to an expense account.

Tips paid via credit card in square are mapped to an Other Current Liabilities account. When the tips are paid out the employees on their paycheck, they currently hit the Wages expense account on the P
2 Comments 2
MirriamM
Moderator

How do I get tips in QB Payroll to map to the appropriate liability account? Currently, I can only map tips in a paycheck to an expense account.

Hello there, @davidward-email. I'm here to lend a hand. 

 

In your QuickBooks Online Payroll account, you can manage your payroll accounting settings to track your payroll transactions. However, you can only map wage or payroll expenses. For more information, here's an article: Change your accounting preferences in QuickBooks Online Payroll.

 

With this said, you can manually record the tips and gratuities that your employees may receive from customers for good services provided. To do this, you have to create a Gratuity/Tips liability account first.

  1. Click the Gear icon at the top.
  2. Select Chart of accounts.
  3. Click the New button at the top right.
  4. In the Account Type drop-down list, choose Other Current Liabilities.
  5. Under the Detail Typ, select Other Current Liabilities
  6. Enter Tips in the Name field.
  7. Click Save and Close to save the information.

 

Then, to record the tips received by employees in QuickBooks, here's what you'll need to do:

  1. In the left menu, click the + New button.
  2. Click Check.
  3. Select the employee to pay the tips to in the Payee section.
  4. Choose the Bank Account to pay the tips from.
  5. Enter the amount.
  6. Select the Tips account you created in the Category details field.
  7. Select Save and close.

If you want to add tips to your sales receipt, click this link to know more about it.

 

I'll be here if you have other questions. Let me know in the comment section and I'd be happy to back you up. Have a wonderful day ahead.

MMM Consulting
Level 3

How do I get tips in QB Payroll to map to the appropriate liability account? Currently, I can only map tips in a paycheck to an expense account.

Curious if this was ever fixed for you or if you have to manually JE the payroll expense to the liability account after each payroll? 

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