I am in the same boat! I cannot believe QBO cannot solve this issue! There are many businesses that have tips! I just spent 3hrs on the phone with someone God knows where who couldn't understand my problem because they do not understand accounting. 

Client is a hairdresser and records tip income as part of the total deposit with the sales.

Cash DR100

Revenue CR 75

Tip Liability CR25 (This is being created automatically I guess thru Square which is fine since tips are a liability until actually paid out and delivered to the employee. 

NOW! I want to clear out the liability account when QB payroll does the payroll check. Why is this so difficult for them? 

Tip Liability DR 25

Cash CR 25

Done deal its that simple! The problem is, Quickbooks payroll apparently doesn't let you select a liability account for wages etc. okay...so then QBO, how do you suggest I zero out my tip liability that is a holding account? Do a journal entry? I don't have time to do that every week or every month for clients that I'm doing bookkeeping for. They should be able to select the tip liability account as being paid out when the pay the paycheck.