I'm looking for step by step instructions on how to do the following:
This guide seems to have most the information : https://quickbooks.intuit.com/learn-support/en-ca/help-articles/share-tips-with-your-team/01/261387
Except it does not take into account the payroll setup.
Congrats on your first post in the Community. Good job on finding that helpful article. I'll be happy to share more info from here.
At this time, QuickBooks doesn't offer the capability to track tips. You'll have to manually enter the tip amounts as another income type on your payroll. For more info on recording tips, I encourage you to check out some of these helpful resources:
Let me know if you have other questions. I'll be one message away.
Can I just choose any type of income type? Are there any tax implications to be aware of if run with payroll? I believe that the employer does not have to pay tax on any income that comes from tips.
Neither of the links you provided shows the payroll portion...
You can use an income type such as Other earnings or Allowance. In terms of any tax complications, I recommend reaching out to an accounting professional to find out more. Feel free to ask other questions .
This is very disappointing. Direct Tips are not subject to EI and CPP. I do not see a way to set this up, selecting other or allowance triggers EI and CPP payments for both the employee and the employer.