Using QB Desktop Premier, how do I add tips received from customers to employee's paychecks?

CLM1 · ‎March 03, 2019

Recently, started receiving payments from a customer that include a tip for every employee that works for her, prior to my sending out an invoice. I usually do a Statement for payments received same day. How do I record the tip portion to each employee and do the statement?

Anonymous · ‎March 03, 2019

Set up and use tips payroll items. The easy setup process will help you set these up.

CLM1 · ‎March 08, 2019

Hi BRC,

Sorry for my delay. I have the Tip process set-up using the guided set-up as you mentioned. However, I still do not know how to take the total from the customer's check (they included the tip, lumped up total on one check) and portion out the tip to the employees to whom the tip is to go to.

Any help would be appreciated.

Anonymous · ‎March 08, 2019

RE: However, I still do not know how to take the total from the customer's check (they included the tip, lumped up total on one check) and portion out the tip to the employees to whom the tip is to go to.

If you don't know how much of the total paid to you was tip and how much was for what your business charged, there isn't really any way to re-capture that. You have to keep records with each sale.

CLM1 · ‎March 09, 2019

Hi BRC,

Customer mails me one check for $550.00. The total for the job was $500.00. She instructs me to give the overpayment ($50.00) evenly to the the two employees as a tip ($25.00 for one employee, and $25.00 for the other employee). However, I still do not know how to take the total from the customer's check (they included the tip, lumped up total on one check) and portion out the tip to the employees to whom the tip is to go to. I am planning on giving the customer a Sales Receipt. I need to note the total she paid me with her check and that I did "tip" the employees per her instructions.

Any help would be appreciated.

Anonymous · ‎March 09, 2019

If you'll create the sales receipt after receiving the money, then I'd add one or two lines items for the Tip to it so it's total is the total received.

You could, I suppose, set up a tip item for each employee and then add the right ones to each sales receipt, and then create a sales by item report for these items (or all items) in order to get the total tips to include on the next paycheck.

Or, instead of creating multiple sales items to track tips, and likely how most restaurants track tips to be paid, devise some sort of method to track the tips outside of QB, such as by using Excel or similar.

TRS247 · ‎July 27, 2022

How do you zero out the credit from customer of the overpayment for the tip? Is there a journal entry that needs to be done to zero out customer balance?

TRS247 · ‎July 27, 2022

How do you zero out the credit of the overpayment for the tip? Is there a journal entry that needs to get entered to zero out customer balance?

Charies_M · ‎July 27, 2022

Hi there, TRS247.

I can guide you on how to zero out the credit of an overpayment of a tip in QuickBooks Desktop.

You can use the Journal Entry feature to clear balances. When choosing an offset account, It would best to seek an expert's advice from an accountant to ensure your books will be correct.

Here's how:

Go to the +New button.
Under Other, select Journal entry.
Set the Asset's purchase date as the Date of the entry.
Enter the necessary information.
Click Save and close.

For additional information on this, I recommend checking the following article about creating Journal Entry: Create a journal entry in QuickBooks Online.

In case you want to review the entries made, you can pull up or print a report for Journal Entries.

As always, you can find me here if you need more help with the journal entry process. It's my pleasure to assist you. Have a good one.

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Using QB Desktop Premier, how do I add tips received from customers to employee's paychecks?