Paycheck tips and JE

Hi, JeffL3.

Thank you for reaching out about how to process tips and Journal Entry (JE) in QuickBooks Online. I'm here to share some information.

You'll create a JE if your company pays out tips before depositing the amount to your bank accounts. Here's how:
 

1. Click + New.
2. Tap  Journal Entry.
3. For the first line, choose Undistributed tips, then put the amount you paid out to employees in the Debits.
4. For the second line, hit Undeposited Funds, then put the same amount in the Credits.
5. Tick Save and close.
    

For more details, you can check this article: Share tips with your team.

Additionally, I recommend visiting this article to learn more about how to handle the special situations for tips in QuickBooks: About tips and paychecks.

Let me know if you need further assistance about tips in QuickBooks. I'll be around to lend a hand.

Nope Tips go through the bank account via Credit Card Deposit.   Then they will be distributed to employees through QB payroll.   Do I need to any JE at that point?  or does the QB do everything for me?

Hi there, @JeffL3. 

Thanks for taking the time to follow up with us. 

When you say, "does QuickBooks do everything for me?" could you clarify what you mean by everything? 

At this time, when you use Paycheck tips as the pay type in QuickBooks online, QBO will withhold taxes and include Paycheck tips in wages. You can see more information about Paycheck tips in About tips and paychecks. 

Any additional details you can provide about your current process and what you need to set up exactly will better assist me in providing the right solution for you. 

I'll be sure to keep an eye out for your reply and look forward to chatting with you soon. Take care!