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?


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.
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IntuitMichelle , Community Support Specialist
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