I have a client with a small cafe. He uses Quickbooks payroll and Quickbooks Online. Tips are collected at the point of sale and distributed to the employees every payroll period as a pay type in Payroll. But the way the tips pay type is set up, both the employer and employee are paying payroll taxes on the tips.
Tips are not taxable income anymore. Is there a way to exclude tips from taxes in QuickBooks Payroll?
