Is there a way to have Quickbooks reduce a Tips Payable acct when running payroll for tips received via credit card and paid to the employee using Paycheck tips?

I'm trying to determine if there is a way in QuickBooks to pay tips to employees via the Paycheck tips feature, but have it reduce an associated payable account.  Thus, if I receive a tip via a credit card and setup a Tips Payable account to book it, can QuickBooks reduce that account when running payroll using the paycheck tips feature?

Answer

Hi there kylehosch,

I'm here to share some information about how paycheck tips affect the accounts.

Paycheck tips are automatically posted the Payroll Expense account once you run the payroll. You're only able to associate an expense account to this type of item in the QBO Payroll Settings.

Once you receive the tips, you'll have to enter a journal entry to reduce the Tips Payable account. Simply click the plus (+) sign and select Journal Entry.

I suggest seeking your accountant's advice on which accounts you'll need to debit and credit. 

Below is a useful article about tips that you can refer to:

About tips and paychecks

If you require any further information about paycheck tips, feel free to leave me a comment below. I'd gladly help however I can.
Was this answer helpful? Yes No
Original
IntuitMichelle , Community Support Specialist
QBSE Employee SuperUser
1 additional answer

No answers have been posted

More Actions

People come to QuickBooks Learn & Support for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Qb community
Looking for advice from other business owners?

Visit our QuickBooks Community site.