albertenterprises
Level 2
‎January 21, 2023 10:53 AM

adding employee tip out to pay cheques in QBO

I do the bookkeeping for a couple restaurants.  They need to add the employees' tipout to their paycheques.  I need to withhold CPP, EI and tax on the tipouts but I do not want vacation paid on them.  I do I set up the tipout to avoid the vacation pay.

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JamaicaA
QuickBooks Team
QuickBooks Team
‎January 21, 2023 12:47 PM

Other Questions

Thank you for reaching out to us here in the Community, @albert. I'm happy to provide some information about handling tips in QuickBooks Online.

 

Let’s create a pay type for your paycheque tips. This way, you can withhold the taxes.

 

Here’s how”

 

  1. Go to the Payroll menu and select Employees.
  2. Click the name of the employee.
  3. In the Employee details section, select the Pay pencil icon.
  4. Go to the How much do you pay [employee]? section. Then, select Addition pay types.
  5. Look for the Paycheque Tips and check its box.
  6. Select Done.

 

Once done, you can now enter the amount in the PAYCHEQUE TIPS column when creating a paycheck. Please check the screenshot below as your reference.

 

https://lithium-response-prod.s3.us-west-2.amazonaws.com/intuit.response.lithium.com/RESPONSEIMAGE/3e0f43f4-97ce-4797-bc0b-5f19711f94cd.default.PNG

 

In addition, you can run the Payroll Summary by Employee report in QuickBooks. This will show the comprehensive report of wages, deductions, and tax info, totaled by employee or period. Just go to Reports and search for it.

 

However, if you don’t have a payroll functionality, you can enter journal entries. This process is a good way to track your payroll information. For the detailed instructions, I highly suggest checking out this link: Recording payroll transactions manually.

 

Please know that QBO Payroll is only available in certain regions, including Australia, the United States, the United Kingdom, and Canada. Don’t worry, you can also look for a third-party payroll application in your area that can be integrated with QBO. Once the set-up is finished, you're now ready to manually enter payroll paychecks in QBO. 

 

I'd love to hear updates on how this goes. If you have any other concerns creating paycheques in QBO, please don't hesitate to post again here. I'm just around the corner and willing to lend further assistance.

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