Server payroll check coming out to negative number

Thanks for visiting the Community, Kbeyen3.

I can see how important for your business to have accurate paycheck records. This will ensure correct information on taxes and forms.

Based on the scenario, let’s download the latest tax table before performing any payroll tasks. These updates will provide accurate rates and calculations for supported state and federal tax tables.  

Once done, create the payroll item for your tips. The process depends on how your employees collected them.

If you report all tips the worker received, add a taxable tip pay type and add it on the paycheck. Let’s go to the Payroll Item List page to set it up.

1. Press the Lists menu at the top bar to choose Payroll Item List.
2. At the bottom of the screen, click the drop-down arrow for Payroll Item and select New.
3. Tick the radio button for Custom Setup and click Next to continue.
4. In the Payroll item type window, select Addition and Next.
5. Enter the payroll item’s name in the box (tips) and tap the Next button.
6. Pick the expense account you wish to use to track the item and hit Next.
7. In the Tax tracking type window, choose Reported Tips.
8. Then, press Next and Next.
9. In the Calculate based on quantity window, tick the radio button for Neither and hit Next.
10. Click Finish.

To take away the tips that the employee physically received, create a deduction item to track it. Follow the instructions in this article and go to the Create a payroll item for tips retained by the employee section: Report tips in and out on employee paychecks in QuickBooks Desktop Payroll.

We also have resources on how to handle tips with credits and allocated tips. Each one contains instructions about the setup process.

• Manage tip credits on your employees' paychecks
• Create an allocated tips payroll item

Feel free to visit the Community again for any QuickBooks concerns. I’m only a few clicks away for help. Have a good one. 

I have it all set up correctly but this is what’s happening after I add and deduct the servers tips. On this pay period he made a lot more in tips than usual so his check is a large negative amount. I’m not sure what to do from here. 

I have everything set up correctly with the tips added and deducted but the paycheck is still coming out to a large negative number. Here’s a picture of what it looks like. I’m not sure what to do from here 

Hello there, Kbeyen3.

I appreciate you updating us and giving us all the necessary information and a screenshot for us to understand properly your concern about the paycheck showing a negative amount.

Thank you for following the steps provided by one of my peers. Since you're still getting an error, I'd recommend you review all the tax amounts that you have entered. Once done, I'd like you to revert the paycheck and enter the right details again.

Here's how to revert a paycheck:

1. Go to the Employees tab at the top menu bar.
2. Select Payroll Center.
3. Choose Resume Scheduled Payroll.
4. Right-click the name of the employee and select Revert Paycheck.
5. Click Open Paycheck Detail.
6. Enter the necessary information.
7. Click Save & Close.

I'd like you also to check about tips and paychecks for more information.

Please let me know how it goes or if I can be of more help. I’m always here to help. Take care and enjoy the rest of your day!

I’m still getting a negative amount. I saw online while googling how to fix it was to take away from the federal withholdings and the state to balance out and make the negative check amount to $0. Is that an option? 

I appreciate you for following the steps above and for googling some information, @Kbeyen3.

I understand how valuable time is for you, so I'll route directly to our support. This way, they can guide the exact resolution on how to fix the negative tips on your account. 

Here's how: 

1. Go to this QBDT help link. 
2. Select your product and click Continue. 
3. Enter your concern in the box and tap Continue. 
4. Choose either Chat with us or Have us call you.  
5. Follow the on-screen instructions.

Please call them within business hours to ensure we can cater to your concern promptly.

Additionally, you can always run any payroll reports to review your employees' paychecks and information. Then customize it to show precise details. 

To be more familiar with handling tips in QuickBooks, visit these articles below. 

• IRS Pub Guide to Tips
• IRS Pub Tips on Tips

Notify me if you have additional questions or how the call goes. I'm willing to answer them. Be safe. 

Yes correct you adjust  fed wh if it's not enough adjust state wh still not enough to get a $ 0 you have to adjust tips and add left over tip to next payroll 

yes, thats what we do. If Fed WH and State WH is not enough to make it $ 0 adjust the tip and ad it to the next paycheck.