Hello there, Fabzab.
Thanks for joining the Community. I can help and guide you with the process of recording cash tips in QuickBooks Online.
You’ll have to first add the cash tip as a pay type for your employees. Then, enter the reported cash amount so we can track withhold the appropriate taxes.
This is to ensure you comply with the federal and state requirements for reporting and paying taxes on tip income. You can refer to the Cash tips article for detailed instructions.
Once done, you're able to create paychecks and add the cash tips amount. I’ll walk you through the steps.
Here’s how:
- Go to Workers on the left panel.
- Click Run payroll at the top right corner of the screen.
- Select the Bank account and Pay period, then enter the Pay date and make sure the check date is 2018.
- Choose the employees you’re working on.
- Enter the amount in the Cash Tips box.
- Click Preview payroll.
- Once you're ready, you can Submit payroll.
With these steps, the tips should now be reported on your employees' W-2s
Please let me know if you have any further clarifications. I'll be right here to help you further. Stay safe!
