Hi there, @Shannon Lam.
Thanks for following the thread. I'm happy to provide some information about handling tips in QuickBooks Online Payroll.
First, you'll need to figure out what type of tips you're going to record in QuickBooks. Rather you gave your employee tips directly through cash or if you've added them to your employee's paycheck. If it's cash, this would be considered a Cash tip. If it's added on a paycheck, this would be a Paycheck tip.
To help determine what type of type you've provided to your employee, check out Cash tips Vs. Paycheck tips.
Please note: It's always best to consult with your accountant before recording tips in QuickBooks. Your accountant will know what's best for you and your business. If you don't have an accountant, don't sweat it. You can find an accountant here in our Resource Center.
I've included some steps below that cover recording tips for your employee in QuickBooks below.
- Go to Payroll on the left pane menu.
- From the Employees tab, pick the name of the employee.
- In Employee details, hit the Edit icon next to Pay.
- Within the How much do you pay section, choose Cash Tip or Paycheck Tip.
- Then, Done.
For additional details, take a look at About tips and paychecks.
Feel free to let me know if you have further questions or concerns. You can always reach out to the Community. We're here for you every step of the way. Take care and have a great weekend!
