Once the tips are in the liability account, how are they handled through payroll? The company I am working with pays out the credit card tips each night so the payroll is just reporting the tips in, so they are taxed, and then tips out, as they were already paid to the employee. Both the Tips In and Tips Out items are set to post to the same expense account so it zeros out each week. How do the tips that were posted into the liability account zero out?
