Employees and payroll
I appreciate you sharing your queries here in the Community, @Nunesauto.
I'll provide some information about settling the undistributed tips balance in QuickBooks Online Payroll (QBOP).
Accounting for tips under wages can leave a liability balance since tips represent funds owed to employees, and until they are paid out, they remain liabilities. To zero out these undistributed tips we can use journal entry. Here's how:
- Click on + New.
- Choose Journal Entry.
- For the first entry, pick an account from the Account field. Enter the amount as either a debit or credit, depending on your needs.
- For the next entry, select the account you want to move money to or from. Enter the same amount in the opposite column (credit or debit) as you did in the first line.
- Ensure the amounts match, with one line having the amount in the Credit column and the other in the Debit column, ensuring balanced accounts.
- Add a note in the memo section indicating the purpose of the journal entry.
- Click Save and new or Save and close.
However, I'd still recommend reaching out to your accountant to have hands-on support from technical and accounting perspectives. If you don't have an accountant, don't sweat it. You can find one here in our Resource Center.
In case you need to enter your employee’s year-to-date paycheck info and company totals, check out this article for more guidance: Add pay history to QuickBooks Online Payroll.
Additionally, here is an articles to assist you in reporting your employee’s earned tips, as well as guidance on creating a payroll summary report to view your payroll totals, including employee taxes and contributions in QBO Payroll:
Let me know by adding a comment below if you have more questions or require additional guidance about handling tips in QBOP. The Community is 24/7 available for your needs. Take care!
