Get 50% OFF QuickBooks for 3 months*

Buy now
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Work smarter and get more done with advanced tools that save you time. Discover QuickBooks Online Advanced.

Reply to message

View discussion in a popup

Replying to:
MirriamM
Moderator

Reply to message

Good to see you back, @Marilia.

 

Let me share additional information on how you can take advantage of the tip credit hourly wage. 

 

To start, you need to calculate the employees hourly rate for each payroll period. I have the formula to share to help determine if an employee earned enough in tip income to bring their hourly wage up to the mandated minimum wage for your state, county or city.

 

To determine the employees' hourly rate, here's how:

 

Hourly Rate = (( wage rate X hours work in the pay period) + Tips) \ hours worked in pay period.

 

For more information, see this article: Pay and report tips.

 

I also suggest consulting a tax professional or financial advisor for guidance in setting up your account. To make sure that your payroll records are on the right track.

 

Additionally, if you need tips and related articles in the future, visit our QuickBooks Community help website for reference: QBDT Self-help

 

Feel free to message here again if you have additional concerns. We're always around to help in any way we can. 

Need to get in touch?

Contact us