Thanks for joining in on this thread, mintbooks. I'm here to ensure you'll get the assistance you need in clearing out the liability account in QuickBooks Online (QBO) when paying tips to your employees.
First, let's track the mapping of your Square transactions to ensure they're accurate. Since you're using the Square POS, I'd recommend contacting their customer support team. They have appropriate tools to check the mapping and request to re-map the account to where the tips are imported. If you're using the Square app to track your transactions, we can also ask for assistance from them to exclude the tips.
In addition, we also suggest consulting your accountant for further help.
Moreover, we can categorize transactions so we can review and place them in the correct accounts. It also looks for and tries to match a transaction you've already entered in QBO to avoid duplicates.
If you have additional concerns about setting up accounts, we're always available in the Community to help. Have a good one, and take care!
