Hey there, @BABI.
Currently, QuickBooks doesn't have an automatic feature for calculating tip credits in the system. Therefore, you'll need to manually set this up in the program to report tips on paychecks and payroll forms.
To pay tip credits, you can set it up as another hourly rate in QuickBooks. Here's how you can do it:
- Go to Payroll and click Employees.
- Select your employee.
- From Pay types, click Start.
- Select + Another hourly rate.
- You can change the Pay type name if you want and enter the Rate per hour.
- Repeat steps 4-5 if you need more pay items.
- When finished, click Save.
When you create paychecks, these rates will appear in the table, and all you need to do is enter the hours.
Please be aware that the regulations for tip credits vary by state. You can check this article to find details on tax forms, withholdings, unemployment, and other taxes, e-file and pay information, general state and agency information, and employer registration: Access state agency websites for payroll.
If you have additional concerns about tracking tips in QuickBooks Online, feel free to add them to the thread. I'm here to help. Have a great day!
