Tipped Employees - Making up the difference in hourly wage

Let's check the setup so QuickBooks will calculate the correct minimum wage for your state, jackierva.

There isn't a change in the minimum wage calculation. You may want to download the latest version of QuickBooks Desktop and tax tables to stay compliant with paycheck calculations.

After updating QuickBooks and the tax table, restart QuickBooks for changes to take effect. Then, check the minimum wage rate if it has the correct amount by following these steps:

1. Go to Reports.
2. Select Employees & Payroll, then Summarize Payroll Data in Excel.
3. Instructions will appear onscreen in Excel if you need to enable macros. QuickBooks ships with prebuilt Excel workbooks that contain programming necessary to generate the Excel worksheets.
4. You need to enable macros
5. Once macros are enabled, the QuickBooks Payroll Reports Workbooks window will appear.
6. Click Options/Setting.
   
7. Change the value of the minimum wage rate, then click OK.
   

Once done, check again the amounts after running the payroll, if it's not calculating correctly, I recommend contacting our QuickBooks Payroll Live Team. They can pull up your account and check the setup for you.

I'm adding these links for future guides:

• QuickBooks Desktop calculates wages and/or payroll taxes incorrectly
• Report tips in and out on employee paychecks in QuickBooks Desktop Payroll.

Keep me posted if there's anything else I can do with checking the state minimum wage calculations. I'm always glad to help you.

@jackiervaRE: Quickbooks used to automatically calculate whether an employee had earned the minimum wage for your state and adjust the hourly rate to meet the minimum if the tips did not make up the difference.

I've use most every version of QuickBooks Desktop and it's never had such a feature. Could it be a different app you're thinking of?

Yes, the way I've always heard of this being handled is to manually calculate the difference and either change the rate on the existing earnings item on the paycheck or add another line item for the additional wages.