Welcome to the thread, @FLBabs.
I'm here to ensure you'll be able to set up and report tips accordingly.
In QuickBooks Online (QBO), there are different types of tips that your employee can receive. In your case, you can account for the tips as cash tips. These are tips your employees receive directly from customers in cash, not through a paycheck. And tips given through credit card charges converted to cash are also considered cash tips.
After that, you'll have to set up a payroll item for tips. Here's how:
- In the left menu, click Payroll.
- Go to the Employees tab.
- Locate and select your employee.
- From Personal Info, select Edit.
- In Additional Pay Types, select Cash Tips or Paycheck Tips.
- Select Save.
Once done, you can now run payroll and enter tips from there.
For more information on managing tips, you can visit these articles:
As always, feel free to visit our QuickBooks Community help website if you need tips or related articles in the future.
Please know that you can post your concern here in the Community. We're always around if you need any help. Take care and have a great day.
