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You'll need to enable to tip-tracking feature in QuickBooks Online (QBO) before you can proceed, @Barnslade. I'll share with you the steps.
Here's how:
- Go to the Gear icon.
- Select Account and settings.
- Click the Sales tab.
- Tap the Sales form content section, then enable the Tips (Gratuity) feature.
- Hit Save, then Done.
You can then add tips to your employee's checks. Follow the steps below:
- Click the + New menu.
- Select Check.
- Pick the employee under the Choose a payee drop-down menu.
- From the Bank Account drop-down menu, choose the account from where you're making the liability payment.
- Under the Category column, enter Undistributed Tips, then type in the amount under the Amount column.
- Fill up the other fields as necessary, then hit Save and Close.
See this article for additional information about this process: Share tips with your team.
I'll share this article with you as well: Cash tips vs paycheck tips. It has a short description for each type of tip, and when to use them.
Don't hesitate to drop a comment below if you have other questions about tips in QBO. I'll get back to you as soon as I can.