Payroll and Tips/Taxes. How do I enter tips for reporting purposes during the payroll run.

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Posted on by Kerry Brooks

Hello everyone,

I have a client who pays out tips each night from the till. During payroll, they only want to report the tips received and calculate the taxes for that income. I cannot figure out how to enter the tip amount without it adding to gross wages.

Any help on this will be very much appreciated.

Thank you, Kerry

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L Vail 65,271 on at

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Hi,

Create a pay code of the type 'Reported Tips'. Amounts included in this pay code are included in taxable income, and are used to calculate taxes, but are not included on the paycheck.

Does that work?

Leslie

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