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jeffrey-r-spring
Level 2

I added payroll tips to my paychecks but would like to know where they show up in accounting and how the amounts are managed?

 
Solved
Best answer November 12, 2019

Best Answers
ShiellaGraceA
QuickBooks Team

I added payroll tips to my paychecks but would like to know where they show up in accounting and how the amounts are managed?

Hi jeffrey-r-spring,

 

QuickBooks Online uses the default payroll expense account for your tips. You can see how they are categorize in the payroll settings. Let me guide you how.

  1. Click Gear.
  2. Click Payroll Settings.
  3. Click Accounting under Preferences.
  4. Under Accounting Preferences you can verify and check your accounts.
  5. Click OK.

I've got these handy articles that you can read about:

In case you need some help articles for your future tasks, please refer to this link: Employees and payroll taxes.

 

Please know that you're always welcome to come back to this thread anytime.

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7 Comments 7
ShiellaGraceA
QuickBooks Team

I added payroll tips to my paychecks but would like to know where they show up in accounting and how the amounts are managed?

Hi jeffrey-r-spring,

 

QuickBooks Online uses the default payroll expense account for your tips. You can see how they are categorize in the payroll settings. Let me guide you how.

  1. Click Gear.
  2. Click Payroll Settings.
  3. Click Accounting under Preferences.
  4. Under Accounting Preferences you can verify and check your accounts.
  5. Click OK.

I've got these handy articles that you can read about:

In case you need some help articles for your future tasks, please refer to this link: Employees and payroll taxes.

 

Please know that you're always welcome to come back to this thread anytime.

jeffrey-r-spring
Level 2

I added payroll tips to my paychecks but would like to know where they show up in accounting and how the amounts are managed?

So it goes to wages?  For example "Payroll Expenses:Wages"

jeffrey-r-spring
Level 2

I added payroll tips to my paychecks but would like to know where they show up in accounting and how the amounts are managed?

I found it in the link you gave me - thanks again

ShipwreckedNYC
Level 2

I added payroll tips to my paychecks but would like to know where they show up in accounting and how the amounts are managed?

Can you share with me what the solution is that you ended up using? I put all the credit card tip income in to a liability account called Tips Payable. Then somehow, I need to do a journal entry when I run payroll - but I'm not sure where it should be moved TO. Help!

ChristieAnn
QuickBooks Team

I added payroll tips to my paychecks but would like to know where they show up in accounting and how the amounts are managed?

Hi there, ShipwreckedNYC.

 

Thank you for visiting again the QuickBooks Community. I'll ensure you'll be routed to the right person to help you further in categorizing transactions.

 

As mentioned above, QuickBooks Online applies the default payroll expense account for tips. Since you put the credit card tip income into a liability account and you're not sure where it should be moved when creating a journal entry, I suggest consulting an accountant. They can provide suggestions on how to properly handle payroll transactions, especially with the category to use for the debit and credit.

 

Please refer to this article to view different information on how Paycheck and Allocated tips work in QuickBooks: About tips and paychecks.

 

Feel free to visit us here in the Community if you have other questions about your payroll entries in QuickBooks Online. I'm always here to help.

ShipwreckedNYC
Level 2

I added payroll tips to my paychecks but would like to know where they show up in accounting and how the amounts are managed?

How do I find where the default payroll account is that Quickbooks uses for Tips? 

 

SarahannC
Moderator

I added payroll tips to my paychecks but would like to know where they show up in accounting and how the amounts are managed?

Hello there, @ShipwreckedNYC.

 

In QuickBooks Online, you can find the default payroll account in the Payroll settings. And yes, the default account is the one that is used for Tips. You can go through the same steps shared above or follow the steps below:

 

  1. Go to the Gear icon.
  2. Select Payroll settings under Your Company.
  3. Under Accounting Preferences, you can verify and check your accounts.

 

If you want to gather more insights about tips and paychecks, still, I'd recommend checking this article: About tips and paychecks

 

Lastly, you can look for a payroll report that generates information according to your needs: List of payroll reports

 

Comment below if you have other questions. I'm here to share the information you want to know. Take care always.

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